Small Benefits Exemption Ireland Tax Incentives.

In Ireland's Budget 2025, our government announced significant enhancements to the Small Benefit Exemption scheme. Starting 1 January 2025, employers will be able reward their staff with up to five tax-free gift cards per year, with a total combined value of up to €1,500, a massive €500  increase from the current limit of €1,000. This exciting development provides more flexibility for employers and businesses looking to boost employee morale while enjoying tax savings.

The Small Benefit Exemption allows employers to give non-cash rewards, such as gift cards, to employees without incurring tax liabilities. These rewards are free from income tax, PRSI, and USC, making it a cost-effective way to enhance employee benefits. Whilst no taxes are applied, the rewards must still be reported to Revenue through the Enhanced Revenue Reporting (ERR) system, introduced in January 2024.

• Increase in value: The maximum exemption rises from €1,000 to €1,500 per employee annually.
• More flexibility: Employers can now issue up to five gift cards per year per employee (currently two), giving businesses greater options to reward employees throughout the year.

Perx® offers a prepaid digital and physical gift card solution that perfectly aligns with the enhanced Small Benefit Exemption in Ireland. With Perx, businesses can effortlessly distribute prepaid cards to employees, making it easy to reward them without worrying about complex tax implications.

Here’s how Perx can help businesses and employees take full advantage of the increased limits:

1. Tax Savings: By using Perx reward gift cards, employers can reward employees without triggering additional tax liabilities, saving money on PRSI, USC, and income tax. You can give more, for less!
2. Flexible Gifting Options: Perx cards aren’t locked into specific retailers. Our gift cards can be used anywhere Mastercard® is accepted, giving employees maximum freedom to spend their rewards as they see fit.
3. Physical, digital or even both: Perx® offers both physical (sent via post) and/or digital cards (instant activation) so you can select the option that works best for you and your team.
4. Boost Employee Morale: Regular, tax-free rewards throughout the year can significantly improve employee satisfaction and engagement.

As Ireland’s leading prepaid gift card and rewards provider, Perx® has helped businesses of all sizes streamline their employee reward programs. With the recent increase in the Small Benefit Exemption, now is the perfect time to explore how Perx can enhance your employee reward strategy. Whether a business it is seeking a once off order or an employee recognition program, Perx can facilitate.

As Christmas approaches, so does the deadline to take advantage of the 2024 Small Benefit Exemption, which aligns with the calendar year. Perx® is here to help employers make the most of this opportunity. With the current limit of €1,000, businesses can reward their staff with a Christmas bonus across two prepaid gift cards.

Spread the festive cheer while staying compliant with tax regulations. Follow the steps to place your order online here, or talk to our sales team for larger orders here.