779 Charge to income tax of pensions under Schedule E

This section applies PAYE (that is, the provision of Chapter 4 of Part 42) to all pensions paid under schemes which are approved, or under consideration for approval, under the Chapter including overseas pension schemes (notwithstanding that pension payments to Irish residents from a foreign source would normally be taxable under Case III of Schedule D). This in effect means that to provide services into the State an overseas pension scheme has to operate deduction of PAYE at source and remit it to the Revenue Commissioners in the same way as domestic providers.

The Revenue Commissioners may, however, direct that, until such date as they specify (for example, the start of the income tax year after a pension starts to be paid), pensions under a scheme are to be charged to tax as annual payments under Case III of Schedule D.

Relevant Date: Finance Act 2021