Dáil debates
Wednesday, 10 April 2024
Ceisteanna Eile - Other Questions
Tax Reliefs
4:50 pm
Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source
This was a policy decision that was taken following careful examination by the interdepartmental group. The final conclusion of the report was that the differential treatment of the PRSAs for funding purposes should be abolished and employer contributions to PRSAs should not be subject to BIK.
The interdepartmental report was subject to a public consultation. The responses to the consultation showed general support for the removal of the BIK charge on employer contributions to PRSAs. Section 22 of the Act aimed to level the playing field by abolishing the BIK charge on employer contributions to an employee's PRSA and not counting employer contributions to an employee's PRSA towards that employee's age related and salary percentage limits on tax-deductible contributions. All of this continues to be subject to the overall tax relief limit, as set out in the standard fund threshold.
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