Occupational Pension Schemes

The Occupational Pension Scheme has been set up to manage pension schemes on behalf of employers that wish to take advantage of the recently announced pension legislation. The scheme can be set up regardless of the number of employees that will be within the scheme, whether it’s 5 or 500.

According to legislation, the employer’s taxable income is reduced on the amounts contributed, with current discounted rates standing at a maximum of €2000 per employee per year, while they may also receive a tax credit of 25% for every contribution paid on behalf of an employee. On the other hand, employees are also set to benefit from a tax credit of 25% for every contribution that is paid into the pension scheme.

Any information provided about taxation is based on our understanding of current law and legislation. Future changes in law and taxation or your own financial circumstances could affect the treatment of the plan and the amount of tax payable.