Benefit in Kind (BIK) on Employer-Provided Vehicles

The following will apply for BIK on employer-provided vehicles for 2024:

  • A reduction of €10,000 will apply to the original market value (OMV), to reduce the amount of BIK payable, for all cars in Category A,B,C and D (not E) and all vans.
  • The current reduction of €35,000 in OMV will continue to apply for all electric vehicles.
  • The lower mileage limit in the highest mileage band which applies to employer-provided cars will remain at 48,000.
For 2025, 2026 and 2027, the reductions in the OMV for electric vehicles will be €35,000, €20,000 and €10,000 respectively.

Certain Profits from Micro-Generated Electricity

The amount of profits exempt from income tax, USC and PRSI from the micro-generation of electricity by an individual is being increased from €200 to €400 per year. The scheme is being extended to 31 December 2025.

Company Cars

Lower limit (km) Uppler limit (km) Vehicle Category A Vehicle Category B Vehicle Category C Vehicle Category D Vehicle Category E
0 26,000 22.5% 26.25% 30% 33.75% 37.5%
26,001 39,000 18% 21% 24% 27% 30%
39,001 48,000* 13.5% 15.75% 18% 20.25% 22.5%
48,001* and above 9% 10.5% 12% 13.5% 15%

* Applies to 2023 and 2024 year of assessment only.

The CO2 emission categories are as follows

Vehicle Category CO2 Emissions (CO2 g/KM)
Category A 0g/km up to and including 59g/km
Category B More than 59g/km up to and including 99g/km
Category C More than 99g/km up to and including 139g/km
Category D More than 139g/km up to and including 179g/km
Category E More than 179g/km

Preferential Loans

PA preferential loan is a loan made by you to your employee or former employee, or their spouse. It arises where the rate of interest applied to the loan in a year is lower than the specified rate. The specified rate is set by the Department of Finance.

A preferential loan is a taxable benefit-in-kind. Your employee is chargeable under the Pay As You Earn (PAYE) system on the benefit to:

  • Income Tax
  • Pay Related Social Insurance (PRSI)
  • Universal Social Charge (USC).

Specified Rates

The current specified rates are
Qualifying Home Loans 4%
All Other Loans 13.5%
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