A new legal notice, published on 3 March 2023, updates the thresholds indicated in the Pensions (Tax Exemption) Rules, originally introduced in 2022.
The updated amounts shall be applicable on pension income derived on, or after 1 January 2023, by an individual, who is at least sixty-one (61) years old in the year in which the pension income is received. The updated amounts are as follows:
| Applicability of the exemption | Amount exempt |
Pension income derived in the year immediately preceding the year of assessment 2023 | Twenty per cent (20%), but not exceeding two thousand, eight hundred and sixty-four euro (€2,864) |
Pension income derived in the year immediately preceding the year of assessment 2024 | Forty per cent (40%), but not exceeding five thousand, nine hundred and eighty-seven euro (€5,987) |
Pension income derived in the year immediately preceding the year of assessment 2025 | Sixty per cent (60%), but not exceeding eight thousand, nine hundred and eighty-one euro (€8,981) |
Pension income derived in the year immediately preceding the year of assessment 2026 | Eighty per cent (80%), but not exceeding eleven thousand, nine hundred and seventy-four euro (€11,974) |
Pension income derived in the year immediately preceding the year of assessment 2027 and in subsequent years | One hundred per cent (100%), but not exceeding fourteen thousand, nine hundred and sixty-eight euro (€14,968). |
Should you require any further information in this respect please do not hesitate to contact the undersigned or your KPMG contact.
