Once you take the tax-free lump sum from your pension, you can invest the remainder of your pension (typically 75% of your pension) into an Approved Retirement Fund (ARF). Your ARF can then pay you a monthly pension income and you can also take lump sums from your ARF, if you need to do so. The income that you receive from an Approved Retirement Fund (ARF) is treated as taxable income for Income Tax, Universal Social Charge (USC), and Pay …
What Tax do I have to pay on my Approved Retirement Fund?
In Ireland, the taxation of an Approved Retirement Fund (ARF) is a multi-layered process that primarily focuses on the income and withdrawals you take from the fund, rather than the growth within it. Here’s a breakdown of the taxes you need to be aware of: 1. Income Tax, USC, and PRSI on Withdrawals Any money you withdraw from your ARF, whether it’s a regular payment or a one-off lump sum, is treated as income for tax purposes. This means it …
TRANSFERING ASSETS – HOW TO AVOID GIFT TAX IN IRELAND.
If you ever want to gift money or assets to your children, then you have to consider gift tax. Gift tax in Ireland is 33%. Here are a few useful tips on how to avoid having to pay gift tax in Ireland: So there are ways to avoid paying gift tax, as long as you plan it properly! Feel free to call us on 01 5267770 or 053 9110380 if you have any questions.
Big Changes to PRSAs and Pensions from January 2025.
Big Changes to PRSAs and Pensions from January 2025. The Finance Bill, published in October 2024, brings some important changes to how pensions and Personal Retirement Savings Accounts (PRSAs) will work in Ireland. These changes will have a big impact on retirement savings for company directors. Here is a summary of the key changes from Jan 2025. Employer Contributions to PRSAs will be limited to 100% of Salary. The big news is that employers can only contribute up to 100% …
New Pension Rules 2023 for Company Directors
Very favourable and attractive new Company Pension Rules were signed into law on 15th of December 2022 for PRSA’s. (PRSA means Personal Retirement Savings Account). The Finance Act 2022 introduced significant changes to Personal Retirement Savings Accounts (PRSAs). We are happy to say these new rules will have a very positive impact for Company Directors and their spouses. What do the new Revenue Rules mean for Company Directors? 1. Your company can transfer more money in any single year into …
Inheritance Tax on Pensions – How to make sure your Spouse gets your Pension Tax-Free if you pass away
Recent changes in the Finance Act December 2022 now mean a PRSA Pension is the better way to structure your Pension so that your Spouse inherits your Pension Tax Free in the event of your untimely death. Currently most Company Directors have Executive Pension Schemes. In the event of your untimely death Executive Pension Schemes in most cases pay a lump sum to a spouse of no greater than 4 times your salary from the pension, with the balance assessable …
New Pension Rules for Company Directors are a GAME CHANGER for Business Owners.
Very favourable and attractive new Company Pension Rules were signed into law on 15th of December 2022 for PRSA’s. We have been liaising with industry representatives to verify the implications of these new rules. We are happy to say these new rules will have a very positive impact for Company Directors and their spouses. (PRSA means Personal Retirement Savings Account). These new changes now mean: Your company can transfer more money in any single year into a PRSA pension than …
Budget 2018 Update – Main points
Standard rate income tax band increased by €750 for 2018, giving a tax saving in 2018 of €150 for higher rate taxpayers. Earned income tax credit for the self-employed and proprietary directors increased by €200 to €1,150 for 2018. The lower USC bands and tax rates will be reduced in 2018. The maximum saving for higher earners is €178 pa. DIRT rate reduced to 37% in 2018 but no change announced in the exit tax rate of 41%. All State …
