Recognised Pension Commutation (Exemption) Rules, 2016

L.N. 262 of 2016

INCOME TAX ACT

(CAP. 123)

Recognised Pension Commutation (Exemption) Rules, 2016

IN exercise of the powers conferred by articles 12(1)(h) and 96

of the Income Tax Act, the Minister for Finance has made the

following rules:-

(1) The title of these rules is the Recognised Pension Citation. and

commencement.

Commutation (Exemption) Rules.

(2) These rules shall come into force with effect from the year

of assessment 2017.

For the purposes of these rules

Interpretation.

"the Act" means the Income Tax Act;

"the Commissioner" means the Commissioner for Revenue;

"recognised retirement scheme" means a retirement scheme

licensed, registered or otherwise authorised under the Retirement Cap. 514.

Pensions Act, and which qualifies as a Recognised Overseas Pension

Scheme in accordance with the Finance Act 2004 of the Parliament of

the United Kingdom;

"retirement date" means the date when the payment of

retirement benefits commences, as prescribed in terms of the

Retirement Pensions Act, including any regulations or Pension Rules Cap. 514.

issued thereunder;

"retirement scheme administrator" means an entity appointed to

perform duties in connection with the overall operation and the

ordinary and day-to-day operations of a recognised retirement scheme

and which is so licensed, registered or otherwise authorised under the

Retirement Pensions Act, including any regulations or Pension Rules Cap. 514.

issued thereunder;

"total pension" means the total value of the assets held by a

recognised retirement scheme for a member and which are available

to provide retirement benefits to the member, such value being

determined on the member’s retirement date.

(1)

The total amount of capital sum received by way of Exemption.

commutation of pension by a member of a recognised retirement

scheme which is exempt from the tax under the provisions of article

12(1)(h) of the Act shall amount to a maximum of thirty percent

(30%) of the total pension.

(2) The provisions of sub-rule (1) shall apply irrespective of

whether the said capital sum is paid as one lump sum or in a series of

tranches within one year from retirement date as prescribed under the

Retirement Pensions Act, including any regulations or Pension Rules

issued thereunder.

The retirement scheme administrator shall provide the

Commissioner with the information in its possession regarding sums

paid to a member of a recognised retirement scheme as the

Commissioner may require for the purpose of administration of these

rules.

€0.18