Taxes Consolidation Act 1997 section 779

Charge to income tax of pensions under Schedule E

Section 779 provides that pensions paid under Revenue-approved schemes, including overseas pension schemes, are charged to tax under PAYE, with a facility for Revenue to direct that pensions be taxed instead as annual payments under Schedule D Case III.

• Pensions paid under schemes approved or being considered for approval under the Chapter, including overseas pension schemes, are charged to tax under Schedule E with PAYE applying accordingly.
• This overrides the normal rules that would otherwise tax foreign-source pension income under Schedule D Case III, requiring overseas schemes serving Irish residents to operate PAYE at source.
• Revenue may direct that pensions under a scheme be charged to tax as annual payments under Schedule D Case III until a date they specify, with tax deductible at the standard rate from each payment.
• This direction facility allows Revenue to manage transitional situations, for example where PAYE arrangements are not yet in place at the point a pension begins to be paid.