Taxes Consolidation Act 1997 section 787J

Allowance to employer

Section 787J allows an employer to deduct contributions made to an employee's PRSA as a trading expense or management expense, subject to certain limits and conditions.

• An employer may deduct contributions paid to an employee's PRSA as an expense in computing trading or professional profits, or as a management expense in the case of an assurance or investment company.
• The deduction is limited to the employer limit for each employee (i.e. the employee's salary); any excess is not deductible.
• Relief is only available for contributions actually paid during the chargeable period — provisions or accruals do not qualify.
• The deduction is only available where the employees are employed in a trade or undertaking the profits of which are subject to income tax or corporation tax; contributions relating to tax-exempt activities (e.g. a charity) are not deductible.