Paschal Donohoe (Dublin Central, Fine Gael)
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Section 114 of the Taxes Consolidation Act 1997 (TCA) provides for a tax deduction in respect of expenses incurred wholly, exclusively and necessarily by an individual in the performance of the duties of his or her employment.

Professional membership fees are only deductible under section 114 TCA where they are incurred wholly, exclusively and necessarily by an individual in the performance of the duties of his or her employment.

In the context of professional fees, this generally means where:

1. the duties of an employment necessitate that the employee is a member of a professional body, or holds a practicing certificate or licence, and

2. the employee cannot exercise those duties without that membership, certificate or licence.

Each employee’s circumstances will need to be examined in the context of section 114 TCA requirements. However, Revenue considers that professional membership fees are incurred wholly, exclusively and necessarily by an individual in the performance of the duties of his or her employment, in the following circumstances:

- Where it is a statutory requirement to be a registered member of a designated professional body, association, society, council, etc. in order to exercise a particular profession and an individual is employed in that professional capacity, a deduction under section 114 TCA is allowed in respect of the annual registration or membership fees in such instances.

- Where statutory provisions restrict the ability of an individual to fulfil the duties of an office or employment unless he or she is a member of a relevant professional body.

- Where for commercial necessity, an employee failing to hold a professional membership or practising certificate would prevent an employer from carrying on its trade.

- Where holding a professional membership or practising certificate is an indispensable condition of the tenure of employment. In this regard, Revenue is prepared to recognise expenses incurred on membership of the relevant professional body as meeting the requirements of section 114 TCA, where all the following conditions apply:  

1. the duties of the employee and the duties of the employment require the exercise or practice of the occupation or profession in respect of which the annual membership fee refers;

2. the employee so exercises or practices the occupation or profession in respect of which the annual membership fee refers; and  

3. membership of the professional body is an indispensable condition of the tenure of the employment. 

Where an individual is employed as a qualified accountant in either the public and civil service sector or the private sector (including accountancy practices), and the requirements of section 114 TCA are satisfied, where the expense is not reimbursed by the employer, the employee concerned will be entitled to claim tax relief under this section. 

Detailed guidance on membership fees paid to a professional body is available on Revenue’s website:

www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-02-18.pdf. 

Further guidance on the general rule of deduction of expenses in employment is available on Revenue’s website: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-02-20.pdf.