The Institute has been receiving some member queries in regard to tax treatment of their annual subscriptions. Whilst we would always recommend that you independently verify your position the following is our general understanding of the position.
Deduction for Expenses in Respect of Annual Membership Fees Paid to a Professional Body
This should be read in conjunction with sections 114 and 118(5E) of the Taxes Consolidation Act 1997 (TCA 1997)
This note sets out guidance for the interpretation of section 114 TCA 1997 in relation to professional membership fees and advises of the circumstances where Revenue considers an expense has been incurred wholly, exclusively and necessarily for the purposes of an individual’s employment.
2. Tax deductibility of employee expenses – Section 114 TCA 1997
2.1 General position In addition to expenses of travel necessarily incurred, section 114 TCA 1997 provides for a tax deduction in respect of expenses incurred wholly, exclusively and necessarily by an individual in the performance of the duties of his or her employment.
2.2 Professional memberships Professional membership fees are only deductible under section 114 TCA where those fees are incurred wholly, exclusively and necessarily by an individual in the performance of the duties of his or her employment.
Additionally, fees payable in respect of courses of study, examinations, etc. necessary to become a member of a relevant professional body may be refunded without deduction of tax where they are relevant to the business of the employer – Please see links below to revenue guidance