Pensions - Form 787S (Chargeable Excess Tax) and Form 790AA (Excess Lump Sum Tax)

The administrator of a pension arrangement who deducts tax from a chargeable excess in accordance with section 787R TCA 1997 must submit a return on Form 787S to the Collector-General and pay the tax, by electronic funds transfer (EFT), within 3 months of the end of the month in which the benefit crystallisation event giving rise to the chargeable excess occurs.

Similarly, the administrator of a pension arrangement who deducts tax under Case IV of Schedule D from an excess lump sum in accordance with section 790AA (3)(a)(i) or (3)(b)(i)(I) TCA 1997 must submit a return on Form 790AA to the Collector-General and pay the tax, by EFT, within 3 months of the end of the month in which the lump sum giving rise to the excess lump sum is paid. Both Form 787S and Form 790AA have been amended to reflect the reduction in the amount of the standard fund threshold from €2.3m to €2m with effect from 1 January 2014.

24 March 2014