You can receive a tax free lifetime limit of €200,000 on retirement lump sums from all sources. The amount between €200,001 and €500,000 is taxable at the standard rate of tax (20%). Any amount in excess of €500,000 is taxed under Pay As You Earn (PAYE) at the marginal tax rate (40%).
Lump sum payments arising from foreign pension arrangements are taxed in the same manner. However, you must include details of the lump sum on an Income Tax Return (Form 11 or Form 12). You must pay any tax due when making your annual Income Tax payment.
See Also
Retiring from workPublished: 11 October 2023 Please rate how useful this page was to you Print this page
- Related topics
- Related forms
- Form 790AAReturn under Section 790AA TCA 1997 (Income Tax deducted from excess lump sum in accordance with Section 790AA(3)(a)(i) or (3)(b)(i)(I) TCA 1997)
- Further guidance
- Pensions Manual - Chapter 07Lump Sum Benefits and Commutation
- Pensions Manual - Chapter 27Taxation of Retirement Lump Sums
- Part 07-01-09ATaxation of foreign retirement lump sums
- Pensions Manual - Chapter 07Lump Sum Benefits and Commutation
