Taxes Consolidation Act 1997 section 787AE

Interpretation (Chapter 2E)

Section 787AE defines the key terms used throughout the Chapter dealing with the tax treatment of the Automatic Enrolment Retirement Savings System.

• The section was introduced by Finance Act 2025 and is subject to a commencement order to be made by the Minister for Finance.
• Most definitions cross-refer to the Automatic Enrolment Retirement Savings System Act 2024, ensuring consistent terminology between the tax code and the primary AE legislation.
• The terms "emoluments", "employee" and "employer" take their meanings from the existing PAYE legislation in Chapter 4 of Part 42 of the TCA 1997.
• The key tax principles of the AE system are that employer contributions and fund income are exempt from tax, while benefits drawn down (after any tax-free lump sum) are taxable.