28.10.15 Information for Chamber Members:
The Department of Finance yesterday published the Finance Bill 2015 which gives effect to the
taxation measures announced on budget day earlier this month.
In addition to the Budget measures the Bill also contains details of a number of further changes not
yet announced. Members should note the following two provisions in particular:
Travel Expenses of Nonexecutive Directors
Section 6 inserts a new section 195B into the Taxes Consolidation Act 1997 and provides for
an exemption from income tax and USC of certain vouched expenses of travel and
subsistence of a non-resident nonexecutive director of a company. Such expenses must be
incurred solely for the purpose of attendance by such a director, in his or her capacity as a
director, at a relevant meeting.
Consequently, nonexecutive directors living overseas who travel to Ireland to attend board meetings
will no longer be held liable for USC or income tax on their travel expenses. Please note this measure
only applies to non-resident nonexecutives.
Increased Tax Exemption on Vouchers
Section 10 provides an increased exemption from Income Tax, PRSI and USC in
circumstances where employers give a qualifying voucher to an employee in a year of
assessment. That voucher cannot exceed €500 in value, nor may it be exchanged in part or
in full for cash or be part of any salary sacrifice arrangement between the employee and
employer. Furthermore only one voucher may be given in any one year. 3 This provision
copper fastens in law an existing Revenue administrative concession whereby employees
may receive a voucher to the value of €250.
Rather than opting for cash bonuses companies can thus give staff once-off annual bonuses in the
form of vouchers and benefit from tax exemptions. Notably, this measure can be effectively used for
businesses to support the local economy and local retailers. We encourage Chambers to raise this
measure with their members in an effort to increase local spending.
Both measures above take effect from 01 January 2016 and are subject to Dáil approval.