Posted by Revenue eBrief No. 008/24
Tax and Duty Manual Part 05-01-01k – Chapter 11 – Salary sacrifice arrangements
Tax and Duty Manual Part 05-01-01k – Chapter 11 – Salary sacrifice arrangements – has been updated, largely to refresh the examples.
EXTRACT:
2. What is a salary sacrifice arrangement?
Broadly, a salary sacrifice arrangement is an arrangement under which an employee forgoes the right to receive any part of his or her remuneration due under his or her terms or contract of employment, and in return, his or her employer provides a benefit.
Salary sacrifice arrangements that meet the following conditions may be regarded as being effective:
* there must be a bona fide and enforceable alteration to the terms and conditions of employment,
* the alteration must not be retrospective and must be evidenced in writing, and
* there must be no entitlement to exchange the benefit for cash.
Bookkeepers Ireland 