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Exam Bonus

  • 04-07-2011 8:04am
    #1
    EveT
    Registered Users, Registered Users 2 Posts: 336 ✭✭


    Hi guys,

    are exam bonuses taxed like any other bonus at your highest rate of tax?


Comments

  • #2
    Ideo
    Registered Users, Registered Users 2 Posts: 1,618 ✭✭✭Ideo


    No, they are usually tax free


  • #3
    hivizman
    Registered Users, Registered Users 2 Posts: 1,163 ✭✭✭hivizman


    EveT wrote: »
    Are exam bonuses taxed like any other bonus at your highest rate of tax?

    The Revenue leaflet PAYE/PRSI on Benefits from Employments from 1st January 2004 sets out the practice. There is a specific exemption for examination awards:
    Examination Awards made to you, in the context of passing an examination, or acquiring a qualification which bears some relationship to your duties, will not be treated as giving rise to a taxable benefit provided that the award is an amount that can reasonably be regarded as a reimbursement of expenses likely to have been incurred in studying for the qualification or sitting the examination.

    The leaflet makes it clear that any salary increment as a consequence of passing examinations would be taxed in the normal way as part of your taxable income, but a one-off award, prize or bonus would not be taxed (so long as it can be described as reimbursement of examination or study-related expenses, which will in most cases not be hard to demonstrate if anyone makes an issue of it).


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