Tax relief on pension contributions

Contributions paid to a PRSA for AVC purposes

Tax relief for Additional Voluntary Contributions (AVCs) to Personal Retirement Savings Accounts (PRSAs) is based on the appropriate age-related percentage limit. This limit is based on the income from the employment in question.

This is reduced by any employee contributions to the pension scheme relating to the employment.

You may pay a once-off, or special, contribution after the end of a tax year. This must be done before the following 31 October.

If you make this payment, you can choose to have the tax relief for the contributions allowed in the earlier tax year. This must also be carried out before 31 October of the following year.

When you use Revenue Online Service (ROS), the deadlines for paying contributions and making this choice are extended.

Overseas pensions plans (migrant member relief)

You may be coming, or returning, to Ireland. If you are, you can get tax relief for pension contributions made to pre-existing plans. These plans must be with a pension provider in another European Union (EU) Member State.

Where the relief applies, the contributions to the overseas plan are treated as if they were made, as appropriate, to:

• an occupational pension scheme
• a PRSA
• a Pan-European Personal Pension Products (PEPPs)
• or
• an Retirement Annuity Contract (RAC)

Next: How to claim the tax relief