Professional subscriptions
Employers may pay a subscription to a professional body for their employees. This payment is generally taxable. The employee must pay Income Tax, Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) on the value of the professional subscription.
However, in limited and restricted circumstances employers can pay professional subscriptions without the deduction of tax.
When is a subscription tax-free?
Employers may pay professional subscriptions for an employee without the deduction of tax in the following situations:
Required by law
There is a legal requirement for the employee to:
- be a member of a professional body
- or
- hold a practising certificate or licence.
Required for specific duties
Where membership is not a legal requirement, but is necessary for the employee to perform their full range of their duties.
Commercial necessity
Where the membership or certificate is required for the business to carry on its trade. For example, membership is required to validate the employer's indemnity insurance policy.
Essential condition of employment
The membership or certificate is an indispensable condition of the job. This is usually indicated where:
- it is a requirement in the employee's contract,
- all employees in the same role must hold the membership
- and
- job advertisements for the same role list the membership certificate as a requirement.
Generally, only one professional subscription per employee can be provided tax-fee. This applies where multiple memberships allow the employee to carry out the same or similar duties.