Taxes Consolidation Act 1997 section 787G

Taxation of payments from a PRSA

Section 787G provides for the taxation of payments and transfers of assets from a PRSA, setting out when PAYE applies, the exemptions from PAYE, and the treatment of PRSA assets on the death of the contributor.

• Payments from a PRSA are treated as Schedule E emoluments subject to PAYE, with tax deducted at the higher rate where the PRSA administrator has not received a revenue payroll notification from Revenue in respect of the contributor.
• Certain transfers are exempt from PAYE, including tax-free retirement lump sums of up to 25% of fund value, transfers to an ARF, transfers to a contributor's personal representatives, transfers between PRSAs or to occupational pension schemes, and amounts applied to meet chargeable excess tax liabilities.
• A PRSA administrator is deemed to make assets available where assets cease to be PRSA assets, cease to be beneficially owned by the contributor, or are used in transactions that would constitute distributions from an ARF; a PRSA is deemed to vest when the contributor reaches age 75.
• Where death occurs after PRSA benefits have commenced or are deemed to have commenced, the remaining PRSA assets are taxed in the same manner as ARF assets under section 784A(4).