Global Daily Tax News, Ireland Updates Guidance On Small Benefit Exemption, (Feb 13, 2025)

On February 12, 2025, the Irish Revenue announced changes to guidance concerning the Small Benefit Exemption (SBE).

The changes have been made to reflect the Finance Act 2024 amendment to Section 112B of the Taxes Consolidation Act 1997.

Paragraph two has been updated to reflect that, with effect from January 1, 2025, an employer may provide up to five relevant incentives to an employee in a year of assessment. This is subject to a cumulative annual limit of EUR1,500.

A new paragraph 2.1 had been included in the manual to outline the limits pertaining to the number and value of incentives for each year since the introduction of the exemption.

The examples provided in paragraph five have been refreshed with some new examples added.