Taxes Consolidation Act 1997 section 848Z

Tax credits

Section 848Z sets out how the tax credit and additional tax credit payable to an eligible individual in respect of a pension subscription are calculated.

• The Exchequer adds €1 for every €3 subscribed by the individual, up to a maximum tax credit of €2,500 (i.e. only the first €7,500 subscribed qualifies).
• An individual entitled to this tax credit is also entitled to a further amount known as an "additional tax credit".
• The additional tax credit is calculated as: (maturity tax × pension subscription) ÷ net funds, effectively giving the individual a proportionate share of the tax deducted from their SSIA on maturity.
• Both credits are claimed and allowed under this Part only, not under any other provision of the Tax Acts.