I am informed by the Revenue Commissioners that a discount given by an employer, for example, an employer in the retail sector, on the purchase of goods by one of his or her employees is not regarded as a taxable benefit if the sum paid by the employee is equal to or greater than the cost to the employer of acquiring or manufacturing the goods. However, where goods are sold to an employee for a price that is below his or her employer's cost of such goods, the difference between that cost and the price paid by the employee is a taxable benefit giving rise to a liability to tax and PRSI under the PAYE system.
It is understood that some retail companies operate for their employees a discount system under which the employees are given a voucher that may be redeemed at any branch of the company against future purchases. In these circumstances, the value of the voucher given to the employee, like all other vouchers given by an employer to an employee, is liable to tax and PRSI under the PAYE system.