Ciara Conway (Waterford, Labour)
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Question 92: To ask the Minister for Finance the position regarding a pension being subjected to universal social charge in respect of a person (details supplied) in County Waterford; and if he will make a statement on the matter. [11311/11]

Michael Noonan (Limerick City, Fine Gael)
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The position is that the Universal Social Charge, which came into effect on 1 January 2011, is a tax payable on gross income, including notional pay, after any relief for certain trading losses and capital allowances, but before pension contributions. All individuals are liable to pay the Universal Social Charge if their gross income exceeds the threshold of €4,004 per annum (€77 per week). There are some exemptions including certain elements of foreign pensions. In accordance with the provisions of Section 200 of the Taxes Consolidation Act 1997, (Certain Foreign Pensions) occupational and social security pensions that are disregarded for income tax purposes in the hands of a resident of a country of source will also be disregarded for income tax purposes in this state.

In summary if the taxpayer is in receipt of foreign pension similar to a pension paid by the Department of Social Protection it will not be subject to the universal social charge. However if the taxpayer is in receipt of a foreign occupational pension, which exceeds €4,004, it will be subject to the Universal Social Charge.