Taxation of foreign retirement lump sums

Revenue has published a new Tax and Duty Manual which provides instruction on the income tax treatment of foreign pension lump sum payments which are subject to the provisions of section 200A TCA 1997 ("Lump sums from foreign pension arrangements").

Section 15 of Finance Act 2022 introduced the new section 200A into the TCA 1997 on the treatment of lump sums drawn down from foreign pension arrangements. This section broadly mirrors the provisions applying to the tax treatment of lump sums drawn down from pension arrangements which are subject to section 790AA TCA 1997, e.g., pension lump sums drawn down from approved Irish pension schemes.

The manual provides guidance on the interpretation of the provisions included in section 200A and includes worked examples.