The Small Benefit Exemption - Give Your Employees tax-free rewards of up to €1,000

December 11, 2023

The Small Benefit Exemption - Give Your Employees tax-free rewards of up to €1,000

Make your employees happy this holiday season with tax-free rewards up to €1,000 using the Small Benefit Exemption.

When you give gifts or perks to your employees, it usually means extra taxes because the Revenue sees them as taxable benefits. But there's a simple way to reward your employees without triggering additional taxes for you or them.

With the Small Benefit Exemption, each employee can receive up to €1,000 worth of certain vouchers or non-cash benefits every year without facing taxation. Here's how it works:

  1. Starting from January 1, 2022, employees can get up to 2 tax-free benefits per year, as long as their total value doesn't exceed €1,000.
  2. If you provide more than 2 benefits in a year, only the first 2 qualify for the tax exemption.
  3. The vouchers or benefits must be used to buy goods or services and can't be converted into cash.

This exemption applies to both full-time and part-time employees.

You have plenty of options for non-cash gifts, like store cards, vouchers, gym memberships, spa treatments, concert tickets, and more. You can even use prepaid cards that work wherever Mastercard is accepted, offering versatility in spending. Just make sure the prepaid card doesn't allow ATM withdrawals to keep it from becoming cash.

This holiday season, you can spread joy without worrying about taxes on your gifts. The Small Benefit Exemption and other non-cash gift options offer a tax-efficient way to show appreciation to your team or employees. Whether you choose store cards, vouchers, or other thoughtful non-cash gifts, you have the flexibility to celebrate the season without tax concerns. So, go ahead and share the festive spirit without any tax worries!

Transform your business.
Today is the day to build the business of your dreams. We help you accelerate growth, performance and profitability.
Start Now