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Ireland – April Brings Changes to Tax-Free Travel and Subsistence Rates

Ireland – April Brings Changes to Tax-Free Travel and

This GMS Flash Alert reports on the new maximum rates of motor travel and subsistence allowances in Ireland.

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Ireland’s Minister for Public Expenditure and Reform recently published circulars containing revised maximum rates of motor travel and subsistence allowances.1

These apply from 1 April 2017.Where certain conditions are met, motor travel and subsistence allowances based on Civil Service rates and criteria can be paid to employees tax free.

WHY THIS MATTERS

The revised maximum rates set out in this newsletter apply from 1 April 2017.  In light of this, employers might wish to review their policies and the level of motor travel and subsistence allowances that they pay.  Flat-rate allowances paid in excess of these rates are taxable via employer payroll tax withholding.   

Tables for Motor Travel and Subsistence Rates

Domestic Subsistence Allowances

Domestic subsistence allowances from 1 April 2017
Overnight rates Day rates
Normal rate Reduced rate Detention rate 10 hours or more 5 hours but less than 10 hours
€133.73 €120.36 €66.87 €33.61 €14.01

Employers are reminded that the daily subsistence allowance is not payable for an absence on business that is within 8 kilometres of the employee’s normal place of work or home.  The overnight allowance will not generally be payable in respect of an absence on business that is within 100 kilometres of an employee’s home or normal place of work.

Motor Travel Rates per Kilometre

Motor Travel Rates per Kilometre from 1 April 2017
Distance Bands Engine Capacity
up to 1200cc
Engine Capacity 1201cc to 1500cc Engine Capacity 1501cc and over
Band 1 0 – 1,500 km 37.95 cent 39.86 cent 44.79 cent
Band 2 1,501 – 5,500 km 70.00 cent 73.21 cent 83.53 cent
Band 3 5,501 – 25,000 km 27.55 cent 29.03 cent 32.21 cent
Band 4 25,001 km and over 21.36 cent 22.23 cent 25.85 cent

FOOTNOTE

1  Department of Public Expenditure and Reform, Circular 06/2017: Domestic Subsistence Allowances, 6th March 2017;  Department of Public Expenditure and Reform, Circular 05/2017: Motor Travel Rates, 6th March 2017.

The information contained in this newsletter was submitted by the KPMG International member firm in Ireland.

© 2017 KPMG, an Irish partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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