Tax Deduction for Transportation on Cost

Under the new Rules (LN 67), taxpayers can now claim a tax deduction of employee transportation costs to and from the place of work.

LN 67, introduced in February 2018, applies to transportation costs incurred from year of assessment 2018 to 2020 (the basis years being 2017 and 2019).

The deduction is capped at €25,000 of employee transportation costs or €300 per employee whose transportation costs have been incurred by the employer in the preceding year, whichever is the lower.

This deduction is not automatic. If the undertaking has benefitted from the new Rules, it may not benefit from any other tax deduction under the Act. In addition, to benefit from this tax deduction, the enterprise must:

  1. Maintain proper records of the employee transportation costs
  2. Claim the deduction in its income tax return (costs incurred during basis year)
  3. Submit a declaration signed by a Certified Public Accountant together with the income tax return to confirm that the costs have been calculated correctly.

Contact our team of experts at Firstbridge to learn more about this tax deduction and how your enterprise may benefit from it.