Pensions for Company Directors 9 Tax Benefits

  1. Corporation tax relief on employer pension contributions;
  2. No PRSI payable on employer pension contributions;
  3. No USC payable on employer pension contributions;
  4. No BIK on employer’s contribution to employee’s pension plan;
  5. Tax Free Investment growth; there is no Income Tax, Capital Gains Tax or DIRT tax payable in respect of investment returns;
  6. Tax free retirement lump sum of 25% of your fund subject to a max of €200,000, for pension maturity values in excess of €800,000 the balance remaining of the 25% after the first €200,000 is drawn down subject to a lower tax rate of 20%;
  7. Post Retirement tax planning options where you have the option of investing into an Approved Retirement Fund (ARF) and Approved Minimum Retirement Fund (AMRF) and these pension assets are passed inheritance tax free to your spouse and to your children if they are over 21.;
  8. Higher investment limits for Company Directors, no earnings cap limit of €115,000 that applies to Sole Traders;
  9. The Company can provide Death in Service (Life Cover) benefits of up to 8 times the Director’s salary and this is an allowable expense for the business and is not regarded as a BIK for the Director.
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