Case I Deduction - Membership Fees

Jimmy Bottles

Revenue eBrief No. 19/11 is confusing the hell out of me.

It first says that since Jan 2011, employers don't get a tax deduction for paying membership fees.

However, it later says there's a previso under S114 that membership fees are deductible for employers where an employees membership of an association is vital for their employment.

Am I reading this right ?

nompere

It says that either the employer gets a Case 1 deduction and the payment is exempt from PAYE/PRSI/USC or the employer doesn't get a deduction and must operate PAYE/PRSI/USC on the payment.

The various examples in the ebrief make these rules pretty clear.

These are all deductible/exempt:

Where there is a statutory requirement for membership of a professional body etc.

Where there is a requirement for a practising certificate or licence

Where 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

Where the employee so exercises or practices the occupation or profession in respect of which the annual membership fee refers

Where membership of the professional body is an indispensable condition of the tenure of the employment