Benefit in Kind: Tax exemptions on travel passes paid for by employers have been extended to include LUAS services, it was announced in the Finance Bill yesterday. Integrated tickets such as those covering LUAS and Dublin Bus will be free from tax, as long as the employer pays for them.
The exemption from benefit-in-kind (BIK) tax on employer-provided travel passes currently applies only to services run by CIÉ, its subsidiaries and certain other licensed operators.
The Minister for Finance, Mr McCreevy, yesterday clarified some of the rules regarding the tax treatment of a range of employee benefits.
This follows the charging of PAYE, PRSI and the health levy to benefits in kind for the first time on January 1st, 2004.
Shares given to employees will only be exempt from PAYE if the shares are held in the employer's company or parent company.
Aside from pension contributions, company shares or share option schemes and the provision of travel passes are the only substantial employee benefits not subject to PAYE and PRSI.
Benefits derived from preferential interest rates on loans will be subject to tax for employees and ex-employees who retain or receive such loans.
Mobile phones, computers and high-speed internet equipment provided by employers to employees in their home for business use will be exempt from tax as long as private use is incidental.
