Revenue’s Tax-Allowance for Long Service Awards 2018

January 10th, 2018
Ann Lyons by Ann Lyons

Revenue offers tax-relief on Long Service Awards, when the awards take the form of tangible gifts. This represents up to 57% savings over long service awards made in the form of cash or vouchers.

What is the Allowance?

Employees with long service are allowed tax free tangible gifts up to a maximum of €50 for each year of service, starting at 20 years of service and every 5 years thereafter:

Service Cash Vouchers  Gifts  Allowance
20 yrs Taxed Taxed Tax-Free Up to €1000
25 yrs Taxed Taxed Tax-Free Up to €1,250
30 yrs Taxed Taxed Tax-Free Up to €1,500
35 yrs Taxed Taxed Tax-Free Up to €1,750
40 yrs Taxed Taxed Tax-Free Up to €2,000

Revenue Rules on Long Service Awards

You may make a long service award to employees and directors. This award is not a benefit in kind, if it meets all of the following conditions:

  • the award is made to mark long service of not less than 20 years
  • the award is tangible (that is, not vouchers, bonds or cash)
  • the cost is not more than €50 for each year of service
  • no similar award has been made to the employee within the previous five years.


The Long and Short is …Long Service Awards must be Tangible to be Tax Free!


Gift Innovations offers a wide range of Service Award gifts that you and your employees will love. Contact us for details on our latest range of gifts and a live demonstration of our rewards portal.

(This article was originally published in September 2014. The latest update published January 2018)

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