Revenue Note for Guidance

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Revenue Note for Guidance




This Part provides for a levy on employees for the use of parking facilities provided by employers in the major urban centres of Cork, Dublin, Galway, Limerick and Waterford. The exact areas to which to levy will apply and the commencement date of the levy will be designated by order of the Minister for Finance.

The charge to the levy for a full year will be €200 where an employee has an ongoing entitlement to use a parking space. Where parking spaces are shared by employees, the levy is reduced to €100 where the ratio of the number of employees who have an entitlement to park to the number of parking spaces is two to one or more. Reductions in the levy are also provided for to take account of a-typical work patterns.

In general, the levy will apply to private cars. The levy will not apply to disabled drivers or to employees of the emergency services in the context of responding to an emergency situation. Occasional permission to park for not more than 10 days in a year is excluded as is occasional use of a space (available from a former employer) by a retired person.

Employers are required to deduct the levy throughout the year from employees’ net wages or salary and are required to remit the levy to Revenue at the same time and in the same manner as they remit income tax deducted under the PAYE system.

531O Interpretation (Part 18B)


This section contains definitions of the various terms used in Part 18B.



This section contains a large number of definitions of terms used throughout Part 18B. The more important of these are:

‘car’ means a mechanically propelled road vehicle designed, constructed or adapted for the carriage of the driver or the driver and one or more other persons, other than—

  • a motor-cycle (within the meaning of section 121),
  • an official vehicle (as defined – see below),
  • a van (within the meaning of section 121A) where an employee is required by the employer to use the van in the performance of his or her duties,

a vehicle, other than a van, of a type not commonly used, or suitable to be used, as a private vehicle.

employee” has the same meaning as it has for the purposes of the PAYE regulations. Therefore all persons who are in receipt of emoluments (i.e. wages/salary etc.), including directors, are included.

net emoluments” means emoluments (less pension contributions) after the deduction of PAYE, PRSI, health contributions and income levy. [The parking levy will be deducted by the employer after these deductions have been made – see section 531V(1)].

official vehicle” is defined as a vehicle owned or provided by the State or by a State authority (as defined – see below) where an employee of the State or of such an authority is required by the employer to use the vehicle in the performance of his or her duties.

relevant local authority” means the city council of Cork, Dublin, Galway, Limerick or Waterford.

State authority” is defined as the Garda Síochána, the Defence Forces, the HSE (in so far as it relates to the ambulance service), the Revenue Commissioners (in so far as it relates to the Customs service), a fire authority or such other body as may be prescribed by order of the Minister for Finance under section 531P(1).

‘urban area’ means an area or areas designated by Ministerial Order under section 531P(1).

Relevant Date: Finance Act 2021