S.I. No. 570/2005 - Finance Act 2005 (Section 21 (1)(e)(ii)) (Commencement) Order 2005


S.I. No. 570 of 2005



Finance Act 2005 (Section 21 (1)(e)(ii)) (Commencement) Order 2005

I, Brian Cowen, Minister for Finance, in exercise of the powers conferred on me by section 21 (2)(g) of the Finance Act 2005 (No. 5 of 2005), hereby order as follows:

1.      This Order may be cited as the Finance Act 2005 (Section 21 (1)(e)(ii)) (Commencement) Order 2005.

2.      The 23rd day of September 2005 is appointed as the day on which section 21(1)(e)(ii) of the Finance Act 2005 (No. 5 of 2005) comes into operation.


GIVEN under my Official Seal,

21st September, 2005





Minister for Finance.

Explanatory Note

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

This Order appoints 23 September 2005 as the date for the coming into operation of section 21(1)(e)(ii) of Finance Act 2005. Section 21 of Finance Act 2005 amends Part 30 of the Taxes Consolidation Act 1997 , which deals with the tax treatment of Revenue approved occupational pension schemes, retirement annuity contracts and PRSAs, by providing for tax relief for contributions to EU pension plans in certain circumstances.

Section 21(1)(e)(ii) of Finance Act 2005 facilitates Irish pension providers, authorised and approved by the Pensions Board to accept contributions from an undertaking located in another EU member state, in offering trust based occupational pension schemes to such undertakings under the EU ‘Pension Funds’ Directive (Directive 2003/41/EC on the activities and supervision of institutions for occupational retirement provision) by providing that the investment returns from such a scheme will be exempt from income tax (and capital gains tax pursuant to section 58 of Finance Act 2005) etc. The EU ‘Pension Funds’ Directive comes into effect on 23 September 2005. This Order thus brings into effect section 21(1)(e)(ii) of Finance Act 2005 on the same date.