By means of Legal Notice 6 of 2024, the Commissioner for Revenue has amended the above-mentioned rules to increase the maximum rebate allowed against pension income earned on or after the 1st January 2024.
With respect to pensioners being charged to tax at the married rates of tax (in terms of Article 56(1)(a) of the ITA), the maximum rebate allowed has been increased from Eur340 to Eur528.
With respect to pensioners being charged to tax at the parents rates of tax (in terms of the second proviso to Article 56(1)(b) of the ITA), the maximum rebate allowed has been increased from Eur670 to Eur858.
With respect to pensioners being charged to tax at the single rates of tax (in terms of Article 56(1)(b) of the ITA), the maximum rebate allowed has been increased from Eur880 to Eur1,068.
The tax rebate for pensioners being charged to tax at the married rates of tax is calculated by deducting the amount of Eur12,700 from the pension income and multiplying the result by 15%, subject to the above-mentioned capping. The deductions for pensioners being charged to tax at the parents and single rates of tax are Eur10,500 and Eur9,100 respectively.
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