| Cash equivalent - 30% of original market
value. With effect from 1 January 2004, BIK will be calculated
on 30% of the open market value of the car with no reduction
for amounts borne by the employee in respect of the car costs. |
| The percentage which is now applied to
the open market value of the company car will be determined
based only on business mileage as follows: |
| BIK Calculation By Vehicle Category |
| Business Mileage |
| Lower Limit |
Upper Limit |
Vehicle categories A,
B and C |
Vehicle categories
D and E |
Vehicle categories
F and G |
| Kilometres |
Kilometres |
(percentage) |
(percentage) |
(percentage) |
| - |
24,000 |
30% |
35% |
40% |
24,000 |
32,000 |
24% |
28% |
32% |
32,000 |
40,000 |
18% |
21% |
24% |
| 40,000 |
48,000 |
12% |
14% |
16% |
| 48,000 |
- |
6% |
7% |
8% |
|
| Vehicle Category By Emmission Level |
| Vehicle Category |
CO2 Emissions (CO2 g/km) |
| A |
0g/km up to and including 120g/km |
| B |
More than 120g/km up to and including 140g/km |
| C |
More than 140g/km up to and including 155g/km |
D |
More than 155g/km up to and including 170g/km |
E |
More than 170g/km up to and including 190g/km |
| F |
More than 190g/km up to and including 225g/km |
| G |
More than 225g/km |
|
|
| The charge to BIK for the private use
of an employer’s van will be calculated at 5% of the ‘original
market value’ of the van with effect from 1 January 2004. |
| Concession:
There will not be a charge to tax in respect of a company van
where all of the four conditions below are met: |
| - The van provided is essential for the
purposes of the job |
| - The employer requires that the employee
brings the van home |
| - Any private use (other than travelling
to and from work is prohibited), and |
| - Most of the working day (80%) is spent
away from the employer's premises. |
| Specified rate for home loans from 1 January 2009 |
5% |
| Specified rate for other loans from 1 January 2009 |
12.5% |
Note: With effect
from 1 January 2004 PAYE, PRSI and Health Contributions will
be deducted from salary by the employer, in respect of the
taxable value of most benefits.
An employer can provide an employee with a small benefit
to a value not exceeding €250 without applying PAYE and
PRSI to that benefit. |