Taxes Consolidation Act 1997 section 112B

Granting of vouchers

Section 112B provides an exemption from income tax, USC and PRSI where an employer gives a small benefit or voucher to an employee, subject to conditions on the nature, number and cumulative value of the incentives provided in any tax year.

• From 1 January 2025, an employer may provide up to five qualifying incentives per employee per tax year, provided the cumulative value does not exceed €1,500.
• The incentive must be a voucher (redeemable only for goods or services, not cash) or a tangible asset other than cash, and must not form part of a salary sacrifice arrangement.
• The employer must report the date and value of each qualifying incentive to Revenue in real time under the enhanced reporting requirements of section 897C.
• The exemption is due to expire at the end of the 2029 tax year; from 2030 onwards, it will no longer apply unless further legislation is enacted.