S.L. 123.175 Art. 5Contributions by a qualifying employer.

(1) A qualifying employer making qualifying contributions to a qualifying scheme for the benefit of one or more qualifying employees shall, in respect of each such qualifying employee and subject to the provisions of these rules, be entitled to a tax credit amounting to the lower of 25% of the amount of qualifying contribution paid during any year and seven hundred and fifty euro (€750) or such other amount as may be prescribed by the Minister from time to time.

(2) The credit referred to in this rule shall be available as a deduction from the amount of income tax which is due on the qualifying employer’s chargeable income for the year during which the contribution or payment to the qualifying scheme or schemes is made, and any amount thereof which is not so utilised shall be added to the tax credit for the following year and deemed to be part of that tax credit, or if there is no such tax credit for that year, be deemed to be the tax credit for that year and so on for subsequent years.

(3) In the case of a qualifying employer which is a company, the tax credit utilised in a year shall be deemed to have relieved from tax so much of the company’s chargeable income which, when multiplied by the rates of tax at which it was chargeable in that year, is equal to the tax credit.

(4) For the purposes of the Tax Accounts (Income Tax) Rules, the amount of chargeable income which is deemed to have 123.175 PENSION SCHEME RULES

been relieved from tax in accordance with sub-rule (3) shall be allocated to the company’s Final Tax Account.

(5) Any contributions or payments referred to in sub-rule

(1) made by a qualifying employer for the benefit of a qualifying employee shall not be deemed to be a benefit provided by the qualifying employer to the qualifying employee by reason of employment or office for the purposes of the Fringe Benefits Rules.

(6) The qualifying contributions referred in sub-rule (1)

shall be disclosed in the Payee Statement of Earnings (FS3) that the payer is required to prepare in terms of rule 21 of the Final Settlement System (FSS) Rules.