195B Exemption in respect of certain expense payments for relevant directors

Summary

This section exempts from income tax certain vouched expenses of travel and subsistence of a non-resident non-executive director of a company. Such expenses must be incurred solely for the purpose of attendance by such a director, in his or her capacity as a director, at a relevant meeting, as defined in the section.

Details

Definitions

(1) ‘company’ has the same meaning as it has in section 4;

‘director’ has the same meaning as it has in section 770;

‘expenses’ means vouched expenses;

‘relevant director’, in relation to a company, means a director who is not resident in the State and is a non-executive director of that company;

‘relevant meeting’ means a meeting attended by a relevant director in his or her capacity as a director for the purposes of the conduct of the affairs of the company;

‘travel’ means travel by car, motorcycle, taxi, bus, rail, boat or aircraft.

(2) Expense Payments

This section applies to payments made by a company to or on behalf of a relevant director of that company in respect of expenses of travel and subsistence incurred by the relevant director, on and from 1 January 2016, solely for the purpose of attendance by him or her at a relevant meeting.

(3) Exemption

A payment to which this section applies shall be exempt from income tax and shall not be reckoned in computing income for the purposes of the Income Tax Acts. As a consequence of the income tax exemption, any such payment is also exempt from USC and PRSI.

Relevant Date: Finance Act 2021