790A Limit on Earnings

(1) This section provides that, for the purposes of giving relief to an individual under Chapters 1, 2, 2A and 2B, the aggregate of the amounts, if any, of income – taken into account separately for each of the relevant reliefs – is not to exceed an earnings limit as determined by the formula in subsection (2).

(2) The earnings limit is determined by the formula –

A x B

where –

Where the Minister for Finance does not designate an earnings adjustment factor then B will be 1.

(3) Notwithstanding subsection (2), the earnings limit for 2009 is €150,000.

(4) Notwithstanding subsection (2), the earnings limit for 2011 is €115,000².

(5) Notwithstanding subsection (2) the earnings limit for 2010 is deemed to be €115,000 for the purpose of determining how much of a contribution or qualifying premium, as the case may be, paid by an employee or an individual in the year of assessment 2011, is to be treated by virtue of section 774(8), 776(3), 787(7) or 787C(3), as paid in the year of assessment 2010.

Those sections allow an individual who pays a contribution or a qualifying premium in respect of a retirement benefit scheme or an RAC/PRSA after the end of a tax year but on or before the return filing date for that tax year to elect to have the contribution or premium treated as if paid in the earlier year.

Relevant Date: Finance Act 2019