Benefit-in-Kind (BIK)
A taxable perk provided by an employer — most commonly a company car, fuel card, or accommodation — valued and taxed as if it were salary.
Benefit-in-Kind (BIK) is the tax charged on non-cash perks provided by an Irish employer. The most common BIK is a company car: Revenue values the benefit using the car’s open-market value, the number of business kilometres driven each year, and (since 2023) the vehicle’s CO₂ emissions category. The resulting notional figure is added to gross pay and taxed at the employee’s marginal income tax, USC and PRSI rates.
Other taxable benefits include employer-provided accommodation, preferential staff loans, health insurance premiums paid by the company, and vouchers above the small-benefit exemption threshold (€1,500 in 2026, given in up to five separate vouchers).
A small number of benefits are exempt or favourable: bike-to-work scheme purchases up to €1,250 (or €1,500 for e-bikes), employer pension contributions, employer-funded travel passes, and meals at a staff canteen open to all employees.
The BIK regime changed materially in 2023 for company cars — EVs and low-emission vehicles enjoy meaningful relief, while higher-CO₂ vehicles attract a much higher BIK percentage. Use the BIK calculator to estimate the cost of a company car at your salary band and emissions category.
Published 10 May 2026