Valuation of benefits

Small Benefit Exemption

You can give employees a small benefit of up to €500 in value, tax free, each year. This benefit must not be in cash. 

If more than one benefit is given in a year, only the first one qualifies for tax free status. Unused allowance amounts cannot be carried over.

Tax-free vouchers or benefits can be used only to purchase goods or services. They cannot be redeemed for cash.

Note

If a benefit exceeds €500 in value, the full value of that benefit is subject to tax.

Due to the COVID-19 pandemic, Revenue introduced a concessionary measure regarding the one benefit requirement. Details of this measure can be found in Small benefit exemption in the the Benefit-in-kind (BIK) changes during COVID-19 restrictions section.

Next: Specific valuation rules