Taxation of employer benefits
Taxable employer benefits
The following benefits provided by your employer are taxable:
- Accommodation that is free or subsidised where the job does not require you to live in the accommodation (see Free or subsidised accommodation).
- Awards made to you due to staff suggestion schemes.
- Charge cards: private use of a company charge card by you.
- Childcare facilities:
- provided by the employer that are free or subsidised
- or
- provided by independent facility, where the employer pays for or subsidises the cost.
- Company cars for private use.
- Company vans for private use.
- Discounts for you where the goods are sold at below the employer's cost.
- Exceptional performance awards, whether in the form of cash, vouchers or gifts (unless the small benefit exemption applies).
- Loans where no interest is charged or the rate of interest is ‘preferential’ (see Benefit of preferential loans).
- Meal vouchers (disregarding 19 cent per voucher).
- Medical insurance premiums.
- Shares in a company that are given by the company to you free of charge or at a discounted price.
- Sports and recreation facilities:
- provided by the employer, but not to all staff, and you avail of the facilities
- or
- where the employer pays subscription fees to other facilities for certain employees.
- Subscriptions to a professional body where membership of the body is not a requirement of the job.
Employer contributions to an employee's Personal Retirement Savings Account (PRSA) were a taxable benefit up to 31 December 2022 when an exemption was introduced. They were subject to relief up to certain limits depending on the age of the employee and the amount of the contribution.
From 1 January 2025, the exemption only applies to employer contributions to an employee PRSA, provided those contributions do not exceed an ‘employer limit’. The ‘employer limit' is defined as 100% of the relevant employee’s emoluments. For further information on PRSAs, please see Pensions Manual 24.
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