Brendan Griffin (Kerry, Fine Gael)
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46. To ask the Minister for Finance if a pandemic bonus tax exemption will be introduced for employers that want to give their employees a pandemic bonus up to the value of €1,000 similar to the tax-free voucher scheme of €500 that is already in place; and if he will make a statement on the matter. [3942/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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Last week the Government agreed to give a recognition payment of €1,000, for eligible frontline health and ambulance workers. An equivalent payment will be provided for relevant staff in private sector nursing homes and hospices that were affected by Covid-19. The intention is that the payment will not be subject to income tax, USC or PRSI. There are no plans to extend the proposed tax disregard along the lines mentioned by the Deputy.

With regard to the tax-free voucher scheme the Deputy raises, I believe he is referring to the Small Benefit Exemption. This measure allows an employer to provide limited benefits or rewards to their workers without the payment of income tax. A qualifying incentive for the purposes of the scheme may be either a voucher or other tangible asset which does not exceed €500 in value. These could take the form of hampers, meals out, gym/sports memberships, restaurant vouchers or other non-cash benefits. Where the qualifying incentive provided is a voucher, that voucher must be used to purchase goods or services only and must not be redeemable, in part of in full, for cash. The cut-off point of €500 is considered a reasonable level which allows a small benefit to be paid without tax but does not allow this exemption for more substantial benefits.