Taxes Consolidation Act 1997 section 787AC

Exemption of PEPP

Section 787AC exempts from income tax the investment income and certain underwriting commissions of a pan-European pension product (PEPP), provided the income is applied for the purposes of the PEPP.

• Income from investments or deposits held for the purposes of a PEPP is exempt from income tax on a claim being made to Revenue.
• Contracts entered into in the course of dealing in financial futures or traded options (on any futures or stock exchange, whether in the State or not) are treated as investments for this purpose.
• Underwriting commissions applied for the purposes of the PEPP are also exempt, but only where they would otherwise be chargeable under Case IV of Schedule D (i.e. casual underwriting transactions, not an organised trade).
• The exemptions apply to the extent that Revenue are satisfied the income or commissions are held or applied for the purposes of the PEPP.