Dáil Éireann Debate, Tuesday - 14 July 2026
217. Deputy Ryan O'Meara asked the Tánaiste and Minister for Finance if he plans to review benefit-in-kind being charged on staff events and hospitality related spending including working lunches and food deliveries; and if he will make a statement on the matter. [53513/26]
Amharc ar fhreagraIn relation to Benefit in Kind (BIK), staff events and hospitality, including working lunches and food deliveries, different rules apply depending on the circumstances. There has been no recent change to the law in this area but Revenue issued revised guidance, with effect from October 2025. The information is set out at the link below for ease of reference.
A taxable BIK does not apply in the case of free or subsidised meals provided in staff canteens, where meals are provided for all staff generally. In recognising that not all employers have the capacity to operate a full canteen, the updated guidance outlines that a taxable BIK will not occur where meals are brought to, and consumed, on the employers premises, as long as they are provided to all staff.
Where meals are only available to certain employees, the meals that are provided are generally taxable benefits. In the updated guidance published last October, Revenue set out the rules that must be applied when determining whether a taxable benefit exists.
With effect from 1 October 2025, Revenue accepts that the cost of meals provided to employees where a specific operational requirement exists, will not be treated as a taxable BIK, subject to the conditions outlined below. For the purposes of this, “meals” encompass a wide range of consumable items, including but not limited to: food - hot meals, sandwiches, snacks, fruit, biscuits, beverages - tea, coffee, water, juice, soft drinks. Alcohol is specifically excluded.
A charge to tax will not arise where all the following conditions are met:
1. a specific operational requirement exists (e.g., a meeting where lunch is provided to avoid staff having to leave, staff working after normal hours, etc.),
2. the meals are consumed on the employer’s premises,
3. the total cost per employee does not exceed the domestic subsistence civil service day rate of 5 hours or more but less than 10 hours (“the 5-hour rate”).
This rate is currently €19.25 per employee per working day. Where the 5-hour rate daily limit is exceeded, the full cost incurred by the employer is subject to a charge to tax under normal rules. Where, tea, coffee, biscuits, etc. are available to all staff on the employer’s premises, this does not impact the daily limit per employee.
Staff meals consumed in external third-party restaurants, cafés or similar establishments off the employer's premises, are a taxable benefit both pre and post 1 October 2025.
