Finance Act 2016 introduced an income tax exemption in respect of certain expenses of travel and subsistence of an Irish resident non-executive director of a company.
The expenses must be incurred solely for the purpose of attendance by a non-executive director, in his or her capacity as a director, at a “relevant meeting”.
The exemption applies to expenses incurred on or after 1 January 2017.
Payments to which the exemption applies may not exceed the Civil Service approved rates for mileage and subsistence as set down by the Minister for Public Expenditure and Reform. See details of the current Civil Service Rates for Travel and Subsistence.
Payments which come within the term of the exemption are also exempt from USC and PRSI.
“Relevant director”, in relation to a company, means a person holding office as a non-executive director of that company –
- who is resident in the State, and
- whose annualised amount of emoluments from the office for the year of assessment 2017 and for each subsequent year in which the person is a director of the company does not exceed €5,000.
“Relevant meeting” means a meeting in the State attended by a relevant director in his or her capacity as a director for the purposes of the conduct of the affairs of the company.
“Travel” means travel by car, motorcycle, bus, rail or aircraft.
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