Employers must treat lump sum payments made on retirement or removal from employment as taxable pay for tax purposes to the extent that the payment exceeds the greater of:
- Ìý
•ÌýÌýÌýÌý Basic Exemption plus the Increased Exemption (if due)
- Ìý
•ÌýÌýÌýÌý SCSB (Standard Capital Superannuation Benefit)
Employers' Guide to PAYE, at 8.12 and 8.13.
Lifetime limit
Furthermore, there is a lifetime cap of EUR 200,000 on the basic and increased exemption and the additional deduction in respect of SCSB.
Basic exemption
The basic exemption is EUR 10,160 plus EUR 765 for each complete year of service (Revenue.ie). Service before and after a career break may be added together for the purposes of determining a complete year of service, excluding the periods where the employee was on the career break. No
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Web page updated on 17 Mar 2025 16:19