S.I. No. 333 of 2014


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S.I. No. 333 of 2013.

SOCIAL WELFARE (CONSOLIDATED CONTRIBUTIONS AND INSURABILITY) (AMENDMENT) (NO. 2) (EXCEPTED EMOLUMENTS AND INCOME) REGULATIONS 2014

EXPLANATORY NOTE

(This note is not part of the Instrument and does not purport to be a legal interpretation.)

In general, self-employed persons aged from 16 up to 66 years are compulsorily insured as self-employed contributors if they are in receipt of reckonable income or reckonable emoluments. Reckonable income is defined in general as income to which the Tax Acts apply, for example, income earned from a trade or profession carried on in the State or elsewhere, as well as other unearned income, which is taxed under Revenue’s self-assessed system of tax collection. Reckonable emoluments are defined as income which is not derived from insurable employment and to which the PAYE tax collection system applies.

These Regulations specify the following income which is subject to tax but which is not to be regarded as reckonable income or reckonable emoluments for the purposes of liability for a PRSI Class S self-employment contribution—

  1. any encashment amount or deemed encashment amount referred to in section 787TA of the Taxes Consolidation Act 1997, with effect from 8 February 2012, and
  2. any amount charged to income tax in accordance with section 790AA of the Taxes Consolidation Act 1997, with effect from 1 January 2011.

Section 787TA of the Taxes Consolidation Act 1997 relates to the early encashment of certain amounts of private pensions by certain individuals in the public sector who had previously been self-employed.

Section 790AA of the Taxes Consolidation Act 1997 relates to the taxation of retirement lump sums paid to an individual in excess of €200,000.

Last modified:29/07/2014