Basic AVC/tax question

[Toastin]

Hi,
I am about to change my monthly AVC contributions, to max-out my monthly tax free allowance. My main motivation for this is the fact that all of my earnings over €70k are taxed at 52% (income tax, prsi, USC). I am thinking of basically putting all my earnings over €70k into AVC's to avoid this high tax rate. I know I will ultimately pay tax on the money when I withdraw it but it will be at a much lower rate than 52% hopefully.

Question: am I correct in saying that, for example, if I earn €90k and I pay €20k into my pension then I will be taxed as if I only earned €70k? (assuming proper AVC allowance for my age)

Thanks

 

[S class]

You would only pay income tax as if you earned 70k.
USC and Prsi will remain based on 90k.