Employment Tax

Ireland | Revenue Tax and Duty Manual in relation to the provision of staff meals

Summary

Irish Revenue recently issued a new Tax and Duty Manual (‘TDM’) in relation to the provision of staff meals. The TDM outlines two new scenarios where Revenue accepts that a taxable benefit-in-kind (BIK) will not arise. These two scenarios are subject to certain conditions and apply with effect from 1 October 2025. This is a welcome development which provides some practical concessions for business situations where the legislative BIK tax exemption is not satisfied.

The detail

Meals provided to employees on the employer’s premises

The Taxes Consolidation Act (TCA, s.118) provides that staff meals offered in a canteen are not considered a taxable benefit in kind, where the canteen is open to all employees. This section of the legislation has been applied strictly by Revenue in audit scenarios, with no flexibility being provided to employers who do not have the resources or physical space for a canteen.

From 1 October 2025, Revenue will accept that meals brought onto, and consumed, on the employer’s premises will not be treated as a taxable BIK where the following conditions are met:

1. The meals are available to all staff; and
2. The meals are consumed on the employer’s premises.

For the purposes of this paragraph in the TDM “meals” encompasses 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. B. alcohol is specifically excluded.

Working lunches

In general, meals that are only available to certain employees are considered a taxable BIK. From 1 October 2025, Revenue will accept that the cost of meals provided to employees, where a specific operational requirement exists, will not be treated as a taxable BIK. The following conditions apply:

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; and
3. The total cost per employee does not exceed the domestic subsistence civil service day “5-hour rate”. This rate is currently €19.25 per employee per working day. Where the rate is exceeded, the full cost incurred by the employer will be 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 will not impact the daily limit per employee.

Records and compliance

Employers must maintain sufficient records to prove that the conditions in the TDM are met, such as:

• The date the refreshments were provided;
• The total cost of the refreshments; and

The number of employees who availed of the refreshments.

Contact us

For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:

Aoife Reid
Partner

Keith Connaughton
Partner

Clara Flynn
Director

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