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:
Business
Mileage
% of OMV
15,000
or less
30%
15,001-20,000
24%
20,001-25,000
18%
25,001-30,000
12%
Over 30,000
6%
Vans
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.
Preferential
Loans
Specified
rate for home loans from 1 January
2004
3.5% (Previously
4.5%)
Specified rate for
other loans from 1 January 2004
11%
(Previously 11%)
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.
