Voluntary Occupational Pension Scheme (Amendment) Rules, 2019

L.N. 114 of 2019

INCOME TAX ACT

(CAP. 123)

Voluntary Occupational Pension Scheme (Amendment) Rules, 2019

IN EXERCISE of the powers conferred by articles 14(2) and 96

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

following rules:-

(1) The title of these rules is the Voluntary Occupational

Pension Scheme (Amendment) Rules, 2019 and these rules shall be

read and construed as one with the Voluntary Occupational Pension

Scheme Rules, hereinafter referred to as "the principal rules".

(2) These rules shall apply for the year of assessment 2020 and

subsequent years of assessment.

In the definition "qualifying scheme" in rule 2 of the

principal rules, the words "and which is approved by the

Commissioner" shall be deleted.

Rule 5 of the principal rules shall be amended as follows

(a) in sub-rule (1) thereof, the words "amounting to the

lower of 15% of the amount of qualifying contribution paid

during a year and one hundred and fifty euro (€150)" shall be

substituted by the words "amounting to the lower of 25% of the

amount of qualifying contribution paid during any year and five

hundred euro (€500)"; and

(b) immediately after sub-rule (5) thereof, there shall be

added the following new sub-rule

"(6) The qualifying contributions referred

in sub-rule (1) shall be disclosed in the Payee

Statement of Earnings (FS3) that the payer is

required to prepare in terms of rule 21 of the

Final Settlement System (FSS) Rules.".

Rule 6 of the principal rules shall be amended as follows

(a) in sub-rule (1) thereof, the words "amounting to 15%

of the aggregate amount of the qualifying contributions made

during a year, up to a maximum of €150" shall be substituted by

the words "amounting to 25% of the aggregate amount of the

qualifying contributions made during any year, up to a maximum

of five hundred euro (€500)";

(b) sub-rule (2) thereof, including the proviso thereto,

shall be substituted by the following

"(2) The tax credit referred to in sub-rule (1) shall be

available as a deduction from the amount of tax chargeable

on the income derived by the qualifying employee in the

year during which the qualifying contribution to the

qualifying scheme or schemes is made and shall not exceed

the said amount

Provided that in the case of a qualifying employee

who is married and is chargeable to tax jointly with his or

her spouse in terms of article 49 of the Act, the said

deduction may be availed of against the amount of tax

chargeable on the total income of the married couple and

may not exceed the said amount."; and

(c)

sub-rule (3) thereof, shall be deleted.

Rule 7 of the principal rules, shall be substituted by the Substitutes rule

7 of the

following

principal rules.

A qualifying scheme shall be one which

conditions for a

satisfies the following conditions

qualifying scheme.

(a) in the case of an occupational

retirement scheme, it is a scheme that is registered

under the Retirement Pensions Act or any other

law substituting that Act and, in the case of a long

term contract of insurance issued by a licence

holder, it provides for programmed withdrawal of

arrangements as provided for in pension rules

issued under the said Act or law; and

(b) it provides for the commencement of

payment benefits to a qualifying individual on a

date that is not earlier than the date on which the

individual attains the age of sixty-one (61) and

not later than the date when the individual attains

the age of seventy (70), except in those cases

where the scheme provides that the payment is

made by reason of the permanent disability or

death of the beneficiary; and

(c) it satisfies such further conditions as

the Commissioner may deem appropriate to

impose.".

6. Rule 8 of the principal rules shall be amended as follows

(a) in sub-rule (1) thereof, the words "referred to in sub-

rule (5)" shall be substituted by the words "referred to in sub-rule

(3)";

(b)

sub-rules (3) and (4) thereof, shall be deleted; and

(c)

sub-rule (5) thereof, shall be renumbered as sub-rule

7. In sub-rule (2) of rule 10 of the principal rules, the words

"7(b)", shall be substituted by the word "7", wherever they occur.

€0.27