Written answers
Wednesday, 1 October 2025
Department of Finance
Tax Code
Ruth Coppinger (Dublin West, Solidarity)
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37. To ask the Minister for Finance if an employer, when reimbursing an employee the 24 hour Revenue Commissioners’ approved unvouched subsistence allowance rate of currently €205.53, requires from the employee, not a full vouching, but the evidence that they incurred an overnight stay in a hotel via a receipt; if this employer evidencing requirement will give rise to any difference between the cost of the overnight stay and the €205.53 being treated as a benefit in kind mindful that the employee’s meals would need to be funded from this balance (details supplied); and if he will make a statement on the matter. [52213/25]
Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that, in accordance with section 114 of the Taxes Consolidation Act 1997 (TCA), where an employee is necessarily obliged to incur and defray out of the emoluments of the employment expenses of travelling in the performance of the duties of the employment, or otherwise to expend money wholly, exclusively and necessarily in the performance of those duties, there may be deducted from the emoluments of the employee to be assessed to income tax the expenses so necessarily incurred and defrayed.
Arising from this entitlement to a tax deduction in respect of certain expenses, there exists a long-standing Revenue practice under which employers may reimburse tax-free to employees the expenses of travel (and subsistence relating to that travel), subject to certain conditions being fulfilled. Revenue advise that the conditions under which the reimbursement to employees of the expenses of travel and subsistence may generally be made without deduction of tax are as follows:
- the employee must be temporarily away from his or her normal place of work in the performance of the duties of his or her employment,
- the travel expenses must be necessarily incurred in the performance of the duties of the office or employment, and
- arising from a long-accepted position, supported by tax case law, the expenses of subsistence must attach to travelling necessarily incurred in the performance of the duties of the office or employment.
Where expenses are reimbursed based on the prevailing Civil Service rates, the employer is responsible for maintaining adequate records. Paragraph 1.3 of the Tax and Duty Manual (TDM) linked below provides guidance in relation to same.
Having regard to your specific query, provided the requirements of section 114 TCA (as outlined above) are satisfied and the required records are retained, the unvouched payment up to the relevant Civil Service subsistence rate may be made tax-free.
The standard domestic overnight subsistence rate of €205.34 referred to by the Deputy is an unvouched amount to cover accommodation and meals for a period up to 24 hours from the time of departure, as well as any further period not exceeding 5 hours. Accordingly, there are no benefit-in-kind implications in relation to the amount of €75.53 referred to, should the employer choose to pay the Civil Service subsistence rate of €205.34.
Comprehensive guidance on the tax treatment of the re-imbursement of expenses of travel and subsistence to office holders and employees, is available in Revenue's TDM Part 05-01-06, which is available at the following link: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-01-06.pdf
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