A new legal notice, published on 3 March 2023, updates the thresholds indicated in the Pensions (Tax Exemption) Rules, originally introduced in 2022.
The updated amounts shall be applicable on pension income derived on, or after 1 January 2023, by an individual, who is at least sixty-one (61) years old in the year in which the pension income is received. The updated amounts are as follows:
| Applicability of the exemption | Amount exempt |
|
Pension income derived in the year immediately preceding the year of assessment 2023 |
Twenty per cent (20%), but not exceeding two thousand, eight hundred and sixty-four euro (€2,864) |
|
Pension income derived in the year immediately preceding the year of assessment 2024 |
Forty per cent (40%), but not exceeding five thousand, nine hundred and eighty-seven euro (€5,987) |
|
Pension income derived in the year immediately preceding the year of assessment 2025 |
Sixty per cent (60%), but not exceeding eight thousand, nine hundred and eighty-one euro (€8,981) |
|
Pension income derived in the year immediately preceding the year of assessment 2026 |
Eighty per cent (80%), but not exceeding eleven thousand, nine hundred and seventy-four euro (€11,974) |
|
Pension income derived in the year immediately preceding the year of assessment 2027 and in subsequent years |
One hundred per cent (100%), but not exceeding fourteen thousand, nine hundred and sixty-eight euro (€14,968). |
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
