Tax due on EU pension when also getting State pension?

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Reni10

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I currently receive the state contributory pension for myself and an increase for a qualified dependent who is my spouse so this is a total of €470 a week.

I also receive a small EU private pension of €150 a week for the years that I paid into a private pension while living overseas.

I do not have any other income only these 2 pensions.

I know that you do not have to pay tax if you just have the state pension but is there a requirement to pay tax on the EU pension and if so is there a tax free portion or would I still come under the threshold for paying tax?

Any advice most appreciated...
 
Protocol said:
If you are over 65:

18,000 tax exempt for single people

36,000 for married
Click to expand...

Thanks my combined pensions are below this figure so I should be exempt of tax it seems.

I have though received a letter from the EU country that I receive my private pension from to say that they want to charge me tax in their country on this pension if I have not paid tax in my resident country so because I am not liable for tax here in Ireland I think I should also be exempt of paying tax elsewhere as I am under the threshold?
 
No, the tax in one country is calculated independently - just because you are under the threshold in Ireland does not mean you are exempt in another country.

But within the EU, in general, state pensions paid based on contributions made while working in a public service job (civil servant, teacher, ...) are taxable in the country where you worked whereas pensions based on contributions made while working in a private company are taxable in your country of residence

But this is in general and a lot will depend on the actual wording of the double taxation treaty between the two countries

It would help if you could give more details of the country in question and of the nature of your job in that country
 
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Country is Germany and this is a private pension that was paid into many years ago and was not working for the public service.

I think that means I should be ok as well as will still be under the tax threshold for Ireland and as this is a private pension tax is paid in Ireland and not Germany?
 
The relevant document is here = pensions are covered under Article 17 but I'm not sure that I understand it clearly. If someone can understand legalese ...

I think it implies that Germany has the right to deduct tax

[broken link removed]
Article 17
PENSIONS AND ANNUITIES

1. Subject to the provisions of paragraph 2 of Article 18, pensions, other similar remuneration or annuities, arising in a Contracting State and paid to a resident of the other Contracting State, shall be taxable only in that other State.

2. Notwithstanding the provisions of paragraph 1, payments which are made in accordance with the social insurance legislation of a Contracting State shall be taxable only in that State.

3. Notwithstanding the provisions of paragraph 1, such a pension, similar remuneration or annuity arising in a Contracting State which is attributable in whole or in part to contributions which, for more than 12 years in that State,

a) did not form part of the taxable income from employment, or

b) were tax-deductible, or

c) were tax-relieved in some other way

shall be taxable only in that State. This paragraph shall not apply if that State does not actually tax the pension, other similar remuneration or annuity, or if the 12-year condition is fulfilled in both Contracting States.

4. Notwithstanding the provisions of paragraph 1, recurrent or non-recurrent payments made by one of the Contracting States or a political subdivision thereof to a resident of the other Contracting State as compensation for political persecution or for an injury or damage sustained as a result of war (including restitution payments) or of military or civil alternative service or of a crime, a vaccination or a similar event shall be taxable only in the first-mentioned State.

29

5. The term “annuities” means certain amounts payable periodically at stated times, for life or for a specified or ascertainable period of time, under an obligation to make the payments in return for adequate and full consideration in money or money’s worth.
Click to expand...
 
Reni10 said:
I have though received a letter from the EU country that I receive my private pension from to say that they want to charge me tax in their country on this pension if I have not paid tax in my resident country so because I am not liable for tax here in Ireland I think I should also be exempt of paying tax elsewhere as I am under the threshold?
Click to expand...

I don't know the answer to your query but I'm curious to find out what the final outcome is, hopefully you come back here and post an update.

To me it seems that you are liable for tax here in Ireland, but it just so happens that your amount due is zero.

If your German pension is liable for tax in Ireland, and your total income is 32,240, you're under the 36,000 limit for married persons, so your tax amount is zero.

Even if your German pension on it's own of 7,800 a year is liable for tax in Germany, it's under the German limit of 9,169 (or 18,338 for married couples submitting a combined return), so your tax amount is still zero.

Just thinking out loud here but I wonder if it would be beneficial if your German pension was deemed liable for tax in Germany instead of Ireland; so that your 'Irish' income stays at 24,440 for now but if you have any additional Irish income in the future, there's more leeway to keep it under that 36,000 tax limit.
That is assuming your Germany pension doesn't increase each year and/or Germany don't reduce/cut their zero% tax limits in the future.
 
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