Finance Bill 2016 as passed by Dáil Éireann, provides that, with effect from 1st January 2017, travel and subsistence expenses incurred by an Irish resident non-executive director in attending board meetings in Ireland can be reimbursed tax free, where the income (excluding the amount of travel and subsistence expenses) from the directorship does not exceed €5,000.

Where the income from the directorship exceeds €5,000, this provision will not apply, in which case any expenses reimbursed will be fully taxable.


If an employee wants to donate €250 to a charity, can this be done as a salary sacrifice?


No, this cannot be processed as a salary sacrifice. It should be deducted from the employee's net take home pay. The employee does not receive any tax benefit for the donation.

However, where an individual makes a donation of at least €250 in a tax year, the charity can claim back 31% tax relief directly from Revenue following the end of the tax year, subject to the employee having paid this amount of tax. The employee should submit a completed CHY3 Cert (Enduring Certificate which covers a period up to 5 years) or a CHY4 Cert (an Annual Certificate) to the charity. For example, where an employee makes a charitable donation of €250 in 2016, the charity is deemed to have received a gross donation of €362.32 (€250 / 69%). The charity can then claim a refund of €112.32 (€362.32 - €250) from Revenue, on the assumption that the employee has paid tax of at least €112.32 in 2016.