Department of Finance fast track tax free gift vouchers on time for Christmas – Minister Coffey

Following the announcement last week, as part of the Finance Bill, that employers will be able to gift vouchers of up to €500, tax free, Fine Gael Waterford Minister Paudie Coffey has welcomed the news that this measure will be fast tracked on time for Christmas.

“It is very welcome news that my colleague Minister for Finance Michael Noonan is to fast track new measures, which will allow employers to give bonus vouchers of up to €500 to employees, tax free.

“The fast tracking of this measure, to increase the value of non-cash bonuses or benefits which staff can receive from their employers without paying tax, will ensure that the change takes effect before Christmas. Employees can now benefit from this in their Christmas bonus this year.

“Currently, an employer can provide an employee with a once-off, annual non-cash benefit to the value of €250 that is not liable for tax. The new provisions, contained in the Finance Bill, mean the maximum value of such a benefit will be increased to €500. Anything above that is still subject to PAYE and PRSI.

“This is a great incentive for employers to reward staff with a larger bonus for Christmas and it will provide a significant boost to the local economy, where people will spend the vouchers.”
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