Consolidated Income Tax Returns - Part II
18 June 2019
Legal Notices 113 and 114 of 2019 ameliorate the tax incentives provided for by the Personal Retirement Scheme and the Voluntary Occupational Pension Scheme, respectively. Both beneficial changes are applicable from calendar year 2019 (year of assessment 2020).
The main changes to the Personal Retirement Scheme is that the maximum annual tax credit for contribution to retirement scheme is increased from €300 to €500, whilst the tax credit percentage is increased to 25% of the total amount of qualifying contributions made in that particular year of assessment. However, the qualifying schemes conditions have been changed such that the scheme must now provide for the earliest commencement of the payment benefits at the age of 61 (previously 50) and latest at the age of 70 (unchanged).
In the case of the Voluntary Occupational Pension Scheme, the annual tax credit percentage has been increased from 15% to 25% combine with an increase in the tax credit capping from €150 to €500. The qualifying contributions must be declared in the annual FS3. The earliest commencement age for the payment of the benefit contributions has also been increased from 50 to 61 years of age.
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