Taxes Consolidation Act 1997 section 531AAD

Excess bank remuneration charge

Section 531AAD imposes an additional universal social charge (USC) of 45%, known as the excess bank remuneration charge, on bonus payments and similar variable remuneration received by employees of financial institutions that have received State financial support.

• The charge applies to "relevant remuneration" — essentially any pay or benefits that vary with performance — received by employees of specified institutions, where the total exceeds €20,000 in a tax year.
• Relevant remuneration is charged to USC at 45% in place of the normal USC rates, and the employer must deduct the charge at source.
• The chargeable amount is the cash value or money's worth of the remuneration when awarded, substituting market value where it is higher and ignoring any restrictions that would reduce market value.
• Employers must file annual returns with Revenue within 14 days of the end of each tax year, detailing the name, PPS number, remuneration awarded, and charge deducted for each affected employee.