i got this from the website.....
http://www.oneview.mercer.ie/plan-your-pension/retiring-now/tax-free-lump-sum-pension.html
Taxation of lump sums
Lump sum entitlements up to the value of €200,000 can be taken tax free. Under current rules, a further €300,000 can be taken at the standard rate of income tax (currently 20%). Any excess over this, if taken, will be liable to income tax at the individual's marginal rate along with PRSI and the Universal Social Charge.
however the revenue IT21 form says
Are PRSI and Universal Social Charge payable?
Universal Social Charge is due on the taxable part of the lump sum. There is no PRSI liability.
so the first 200,000 is tax free
200,000 to 500,000 at standard rate of 20% with USC and/or PRSI?
then above 500,000 (seen also 575,000) its 40% with USC and/or PRSI?
Also above the 2 million SFT your pension is taxed at 41% (not an income tax) and not subject to USC or PRSI ......is that correct?
http://www.oneview.mercer.ie/plan-your-pension/retiring-now/tax-free-lump-sum-pension.html
Taxation of lump sums
Lump sum entitlements up to the value of €200,000 can be taken tax free. Under current rules, a further €300,000 can be taken at the standard rate of income tax (currently 20%). Any excess over this, if taken, will be liable to income tax at the individual's marginal rate along with PRSI and the Universal Social Charge.
however the revenue IT21 form says
Are PRSI and Universal Social Charge payable?
Universal Social Charge is due on the taxable part of the lump sum. There is no PRSI liability.
so the first 200,000 is tax free
200,000 to 500,000 at standard rate of 20% with USC and/or PRSI?
then above 500,000 (seen also 575,000) its 40% with USC and/or PRSI?
Also above the 2 million SFT your pension is taxed at 41% (not an income tax) and not subject to USC or PRSI ......is that correct?
Last edited: