Taxes Consolidation Act 1997 section 118

Benefits in kind: general charging provision

Section 118 sets out the general rules for the taxation of benefits in kind (BIK) provided by employers to directors and employees, including specific exemptions and the connected persons rules.

• Where an employer provides non-cash benefits such as accommodation, entertainment, services, or other facilities to a director or employee, the cost is treated as taxable pay unless a specific exemption applies or the employee reimburses the employer in full.
• A wide range of specific exemptions exist, including travel passes, bicycles under the cycle to work scheme, business mobile phones, home broadband, computer equipment, electric vehicle charging, medical check-ups, healthcare, flu vaccines, Covid-19 tests, and employer pension contributions.
• Where no specific valuation rules apply, BIK is valued at the higher of the cost to the employer or the amount realisable by the employee, less any amount made good by the employee; for free use of assets (other than accommodation, cars, or vans), the annual charge is 5% of the market value when first provided.
• The BIK provisions extend to benefits provided by persons connected with the employer, as defined in section 10, and a de minimis threshold of €1,905 applies to non-director employees below which BIK is generally not taxable.