Taxes Consolidation Act 1997 section 200

Certain foreign pensions

Section 200 exempts certain foreign occupational and social welfare pensions, benefits and allowances from Irish income tax, provided the country of origin has an income tax system corresponding to Ireland's and the payments would be tax-free for residents of that country.

• Foreign pensions paid for past service in an office or employment, or under foreign social welfare provisions equivalent to certain Irish schemes (such as old age, widow's/widower's and orphan's pensions), are exempt from Irish income tax if they would be disregarded for tax purposes in the country where they arise.
• The exemption only applies where the country of origin has a tax corresponding to Irish income tax — countries without a comparable income tax system, such as the Cayman Islands, do not qualify.
• The exemption does not apply to US Social Security pensions received by Irish residents, because the Ireland–US Double Taxation Agreement provides that these pensions are exempt from US tax on the understanding that they will be fully taxable in Ireland.
• An exempt foreign pension is not treated as income from foreign possessions and cannot be charged under Case III of Schedule D; it should also be excluded from "total income" when computing relief under section 1032.