By means of Legal Notice 48 of 2023, the Government has announced that pension income derived by an individual on or after 1st January 2022 shall be exempt from tax as follows:
| Year of assessment Exempt amount |
| 2023 20% capped up to €2,864 |
| 2024 40% capped up to €5,987 |
| 2025 60% capped up to €8,981 |
| 2026 80% capped up to €11,974 |
| 2027 and subsequent years 100% capped up to €14,968 |
This follows what has been announced in the budget speech for the year 2022 that pension income received by an individual who is at least 61 years of age will be partially exempt, gradually rising to full exemption by the year 2026. The exempt portion shall be omitted from the individual’s tax calculation.