Section 118 is amended to provide that any contributions above the “employer limit” defined in section 787A of the TCA 1997 will be considered a BIK for the employee and therefore subject to tax.
Sections 787A and 787E of the TCA 1997 are amended to insert a new definition of “employer limit” of 100% of an employee’s salary, which will apply to employer contributions to a PRSA.
Section 787J is amended to provide that an employer’s contributions to an employee’s PRSA will be an allowable deduction in calculating the employer’s taxable profits up to the new employer limit.
Can you still make additional payments as an employee or does this require an AVC PRSA?But that still means that I could earn €x and my employer could choose to contribute €x to my pension without any BIK issues arising?
Still seems very generous?
Can you still make additional payments as an employee or does this require an AVC PRSA?
But that still means that I could earn €x and my employer could choose to contribute €x to my pension without any BIK issues arising?
Still seems very generous?
And there's me thinking that they were trying to work towards simplifying the pension landscape/choices...It now makes the choice between on older-style Occupational Pension Scheme (OPS) and a PRSA more complicated.
Yes I agree with you there. Example, employee 45 years of age earns €100,000 per year and can receive €100,000 employer contribution. Rinse repeat for 15 years plus growth which is over €1.5m. That is a good deal.But that still means that I could earn €x and my employer could choose to contribute €x to my pension without any BIK issues arising?
Still seems very generous?
And there's me thinking that they were trying to work towards simplifying the pension landscape/choices...
Until they change all the rules again next yearYes I agree with you there. Example, employee 45 years of age earns €100,000 per year and can receive €100,000 employer contribution. Rinse repeat for 15 years plus growth which is over €1.5m. That is a good deal.
I'm ready the Bill and can see that employer PRSA contributions are indeed being limited to 100% of salary.
I can't see where it says the effective date of this change. Is it immediate or 2025 tax year?
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