Revenue eBrief No. 113/23

08 May 2023

Taxation of foreign retirement lump sums

Tax and Duty Manual Part 07-01-09a - Taxation of foreign retirement lump sums - is a new tax and duty manual which provides instruction on the income tax treatment of foreign pension lump sum payments which are subject to the provisions of section 200A 1997 ("Lump sums from foreign pension arrangements").

Section 15 of Finance Act 2022 introduced a new section 200A into the TCA 1997 on the treatment of lump sums drawn down from foreign pension arrangements. This section broadly mirrors the provisions applying to the tax treatment of lump sums drawn down from pension arrangements which are subject to s.790AA 1997, e.g., pension lump sums drawn down from  approved Irish pension schemes.

The manual provides guidance on the interpretation of the provisions included in section 200A and includes worked examples.