Taxes Consolidation Act 1997 section 195D

Exemption in respect of certain expense payments for resident relevant directors

Section 195D exempts from income tax, USC and PRSI certain travel and subsistence expenses paid to or on behalf of an Irish-resident non-executive director of a company, subject to specific conditions.

• Payments by a company for a non-executive director's travel and subsistence to attend board meetings in the State may be exempt from income tax, USC and PRSI.
• The director must be Irish resident, hold a non-executive role, and have annualised director's emoluments (excluding qualifying travel and subsistence) of no more than €5,000 per year.
• The expenses must be incurred solely for attending a relevant meeting in the State in the director's capacity as a director, and travel means travel by car, motorcycle, taxi, bus, rail or aircraft.
• The exemption is capped at the Civil Service travel and subsistence rates set by the Minister for Public Expenditure and Reform; any excess is subject to income tax, USC and PRSI.