Are per diems tax-free in Ireland?

Since per diems are not considered part of an employee’s income, they are tax-free up to a certain limit.

My employees frequently travel to various international destinations for business but often don’t stay overnight and move on to other locations. How can I determine how the per diem rates apply in these situations?

In these situations, employees would likely be eligible for the 10-hour rate, set out by Circular 07/2017. Depending on the country, the rate will differ between each city. Here’s a quick idea of the 10-hour rates across different locations:Australia: $129.17 - $166.33Austria : €71.00Canada: $110.83 - $126.67Denmark: 698.50 krFinland: €76.16 - €82.00Hungary: 16,001.00 FtKorea: 148,458.33 WonLondon: £66.43Luxembourg: €121.33New Zealand : $85.83 - $138.83Poland: 393.00 złPortugal : €60.33 - €74.33Spain: €81.32 - €95.67Sweden: 952.33 kr

How can I manage per diem rates alongside my expense claims?

The best travel and expense management software helps you create corporate per diem policies and automate per diem and expense reporting processes.

Per diem rates in Ireland: a brief guide

If you’re struggling to understand per diem rates in Ireland, you’re not alone. Whether you’re unsure of how per diem allowances fit in with expense management processes or you’re simply not up-to-date on the most recent rules, we’ve broken it down into simple terms to help you stay informed and compliant.

What are per diem rates for business travel?

Per diem rates for business travel are set allowances that companies provide to cover employee expenses while travelling for business. This system eases the administrative hassle of employees submitting individual receipts and simplifies expense management for finance departments.

Here are a few key things to know about per diem rates:

Per diem rates typically include accommodation, meals, and incidental expenses, as well as transportation and mileage costs

Governments or federal agencies consider average maximum accommodation costs, the general cost of living, and any travel regulations to establish allowances and rates

Per diem rates often vary depending on the location of the business trip and how long employees will travel for

Do businesses have to use per diem rates?

No, businesses don’t have to use the per diem rates established by governments or federal agencies. They can also reimburse the actual costs of travel, which includes requiring employees to save and submit receipts for any expenses incurred.

Employers can also choose to adhere to per diem guidelines for some costs, such as meals and mileage rates, and set their own expense guidelines (within a corporate travel policy) for expenses like airfare and accommodation.

What are the most important things to know about per diem allowances in Ireland?

Per diem rates in Ireland are set by Revenue, the Irish Tax and Customs office. The Irish per diem allowances are known as “subsistence rates” and civil service rates, and they apply to employees who travel for work. Private businesses also typically use these rates since they set the maximum tax-free amount employees can claim for business trip expenses.

Revenue sets out subsistence expense rates for employees travelling within Ireland and separate rates for employees travelling internationally.

What expenses are covered by per diem rates for Ireland?

Per diem rates (or subsistence allowances) in Ireland include:

Meals and drinks

Accommodation

Mileage for privately-owned vehicles

Miscellaneous expenses related to business travel

What expenses aren’t covered by per diem rates for Ireland?

There are no per diem guidelines set out by Revenue for the following expenses:

Airfare

Ground transportation

Easily manage employee expenses and per diem allowances by creating your own travel and expense policy.

How are per diem rates calculated for travel within Ireland?

Per diem rates for domestic travel within Ireland are the same across the country, but Revenue does make a distinction for subsistence rates when employees travel abroad.

For domestic travel, allowances are split into daily subsistence rates and overnight subsistence rates. For international travel, rates are categorised into overnight rates, vouched cost of accommodation rates (VA), and hourly rates based on the destination country.

Mileage allowance is a separate reimbursement for employees who use personal vehicles during business trips, and rates vary based on distance, vehicle type, and engine capacity.

Let’s take a closer look at some of the per diem Ireland guidelines.

Subsistence rates and mileage allowances for domestic business trips

Current domestic daily subsistence allowances in Ireland

For employees to be eligible for the daily domestic subsistence allowance, they must travel more than eight kilometres from the employee’s home and usual place of work. Plus, employees can only claim an overnight and day allowance if they work more than five hours the next day.

Period of assignment

Rate

Between five and ten hours

€17.92

Ten hours or more

€42.99

Current overnight subsistence allowances in Ireland

The overnight allowance covers both accommodation and meals. To be eligible for the allowance, employees must be travelling to a location that is 100 kilometres from their home and normal place of work. The allowance covers a period of 24 hours, and the period of subsistence at any one location cannot exceed six months.

There are also different rate categories depending on how long the business trip lasts for:

Normal rate: Up to 14 nights

Reduced rate: Covers the next 14 nights

Detention rate: Covers each of the next 28 nights

An application must be sent to Revenue for assignments lasting more than 56 nights to confirm that subsistence allowances are available.

For overnight stays in Dublin, there is a separate VA rate of up to €195.00 plus €42.99 for meals.

Rate category

Rate

Normal rate

€195.00

Reduced rate

€175.50

Detention rate

€97.50

Current mileage rates for the use of privately owned cars, organised by distance and engine capacity

Distance band

Engine capacity up to 1200cc

Engine capacity 1201cc - 1500cc

Engine capacity 1501cc and over

Up to 1,500 km (Band 1)

41.80 cent

43.40 cent

51.82 cent

1,501 - 5,500 km (Band 2)

72.64 cent

79.18 cent

90.63 cent

5,501 - 25,000 km (Band 3)

31.78 cent

31.79 cent

39.22 cent

25,001 km and over (Band 4)

20.56 cent

23.85 cent

25.87 cent

Per diem rates for trips within Ireland: A quick example

Employee A, based in Cork, travels to Galway on Monday for a three-night stay. They depart for Cork on Thursday, taking eight hours in total to have breakfast, make the journey home, and work for five hours.

Here are the subsistence allowances that Employee A is entitled to for meals and accommodation:

Total allowance for Monday, Tuesday, and Wednesday: €195.00 subsistence allowance = €585

Total allowance for Thursday: Daily subsistence allowance = €17.92

Check out this guide for more information on subsistence rates in Ireland.

Are there different rules for accommodation and meal allowances when employees travel internationally?

There are different rules surrounding overnight rates, VA rates, and ten- and five-hour rates during international travel (as stated in Circular 07/2017).

The allowances and rates vary depending on the destination country and they may also vary depending on the specific city within the country the employee is travelling to.

For example, while the overnight rate is $215.00 in Mexico City, it’s €363.00 in Geneva, Switzerland.

The table below is intended to illustrate a sample of the variations in overnight rates, VA rates, and ten- and five-hour rates across different destination countries and cities.

Country

City

Overnight rate

VA rate

10 hour

5 hour

Belgium (€)

Brussels

N/A

120.75

80.50

40.25

Other cities

193.20

96.60

64.40

32.20

France (€)

Paris

316.50

158.25

105.50

52.75

Strasbourg

188.50

94.25

62.83

31.42

Other cities

98.00

65.33

32.67

Germany (€)

Berlin

239.50

119.75

79.83

39.92

Dusseldorf

176.50

88.25

58.83

29.42

Munich

226.50

113.25

75.50

37.75

Other cities

176.50

88.25

58.83

29.42

Italy (€)

Bologna, Florence, Genoa, Milan, Turin and Venice

326.50

163.25

108.83

54.42

Naples and Rome

260.00

130.00

86.67

43.33

Other cities

260.00

130.00

86.67

43.33

Singapore ($ SGD)

536.00

268.00

178.67

89.33

Norway (Kroner)

Oslo

2,040.50

1,020.25

680.17

340.08

Key takeaways: Per diem rates and subsistence allowances in Ireland

Even though Ireland’s per diem or subsistence allowance guidelines are quite straightforward when compared with the per diem rules set out by other countries, it’s still important to familiarise yourself with the nitty-gritty details.

But, if you want to go one step further and take a load off your shoulders, travel management platform TravelPerk’s expense management features and integrations help streamline business travel and expense management. To find out how TravelPerk can help you cut down on expense admin, get in touch today.

Book, organise and control your business travel, all in one place.

Frequently Asked Questions

Are per diems tax-free in Ireland?
My employees frequently travel to various international destinations for business but often don’t stay overnight and move on to other locations. How can I determine how the per diem rates apply in these situations?
How can I manage per diem rates alongside my expense claims?

Per diem rates in Ireland: a brief guide (2024)

What are per diem rates for business travel?

Do businesses have to use per diem rates?

What are the most important things to know about per diem allowances in Ireland?

What expenses are covered by per diem rates for Ireland?

What expenses aren’t covered by per diem rates for Ireland?

How are per diem rates calculated for travel within Ireland?

Subsistence rates and mileage allowances for domestic business trips

Current domestic daily subsistence allowances in Ireland

Current overnight subsistence allowances in Ireland

Current mileage rates for the use of privately owned cars, organised by distance and engine capacity

Per diem rates for trips within Ireland: A quick example

Are there different rules for accommodation and meal allowances when employees travel internationally?

Key takeaways: Per diem rates and subsistence allowances in Ireland

Book, organise and control your business travel, all in one place.

Frequently Asked Questions

Are per diems tax-free in Ireland?

My employees frequently travel to various international destinations for business but often don’t stay overnight and move on to other locations. How can I determine how the per diem rates apply in these situations?

How can I manage per diem rates alongside my expense claims?

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