Taxes Consolidation Act 1997 section 200A

Lump sums from foreign pension arrangements

Section 200A provides rules for the taxation of lump sum payments received from foreign pension arrangements by individuals who are resident in the State, effective from 1 January 2023.

• The first €200,000 of lump sums received from foreign pension arrangements is tax-free, with the portion between €200,001 and €500,000 taxed at the standard rate of income tax and any amount above €500,000 taxed at the higher rate plus the Universal Social Charge.
• The €200,000 and €500,000 thresholds are lifetime limits that aggregate all foreign pension lump sums paid on or after 1 January 2023 together with any domestic pension lump sums taxed under section 790AA.
• The portion of the excess lump sum taxed at the standard rate is ring-fenced: it does not form part of total income, no deductions or reliefs may be set against it, and the income tax exemption limits and marginal relief do not apply.
• The section does not apply to lump sums paid to the widow, widower, surviving civil partner, children, dependants, personal representatives, or children of the civil partner of a deceased individual.