New Rules for Employer-Provided Meals – Effective October 2025
Revenue has introduced important changes to the Taxation of employer-provided meals from 1 October 2025. These updates affect how Businesses treat meals consumed on company premises and require action before year-end.
What Changed?
Meals provided on-site can now qualify for Tax-free treatment, provided they meet specific conditions. Previously, most employer-provided meals were treated as a taxable Benefit-in-Kind (BIK).
Conditions for Tax-Free Meals
- Meals must be consumed on the employer’s premises.
- Offered to all employees or a defined group, not selectively.
- Costs must be reasonable and not excessive.
- Employers must retain supporting documentation (e.g., invoices, attendance records).
Meals provided off-site or outside these conditions remain taxable and must be processed through payroll.
Why Act Before Year-End?
- Review meal policies since October to ensure compliance.
- Update payroll for any taxable meals that do not meet exemption criteria.
- Enhanced Reporting Requirements (ERR) apply—details of taxable benefits must be included in real-time payroll submissions.
Example
A company offers free lunch in its staff canteen during working hours. Under the new rules, these meals are tax-free if properly documented. However, paying for off-site restaurant meals for certain employee circumstances remains taxable and must be reported as BIK.
Need help applying these changes? Contact our team for guidance on compliance and payroll integration.