Taxes Consolidation Act 1997 section 787Z

Extent of relief

Section 787Z sets out the maximum tax relief an individual may obtain in any year of assessment in respect of contributions to one or more pan-European personal pension products (PEPPs), expressed as an age-related percentage of net relevant earnings.

• The maximum allowable contribution that may be deducted or set off in a year of assessment is a percentage of the individual's net relevant earnings, ranging from 15% (under age 30) to 40% (age 60 or over), depending on the individual's age during the year.
• A minimum floor of €1,525 applies: where the percentage-based calculation produces a figure below €1,525, the maximum allowable contribution is treated as €1,525.
• Where an employer contributes to an employee's PEPP and the total contributions exceed the employer limit, the excess is taxable as a benefit in kind on the employee.
• Where an individual also claims relief for qualifying premiums or PRSA contributions in the same year, the maximum allowable PEPP contribution is reduced by the amount of that other relief.