Contributions

The following concessions are regulated under the provisions of the Taxes Ordinance 1997; they are at least current up to the 2005 Year of Assessment (applicable to 2004 income) but are subject to amendment by Ordinance at any time beyond that date. Please note that contributions made to any approved pension scheme, including this Scheme, are limited in aggregate to the percentages quoted below for the purpose of obtaining tax relief:

If you are an employee, any contributions you make up to 20% of your relevant earnings are tax deductible and should be claimed as a deduction on your annual return.

If you are an employer, any contributions you make on behalf of an employee up to 35% of their relevant earnings may be deducted as an expense for the period in question.

If you are self-employed, up to 20% of your relevant earnings are tax deductible and should be claimed as a deduction on your annual return.

Your Pension

Your pension is treated as taxable income. If you decide to take a lump sum when you retire then that will be tax-free (the maximum you may take is 25% of your Individual Account).

Refunds

If you get a refund, because you have been a member of the Scheme for less than two years and you are leaving the Falkland Islands permanently, the refund will be subject to tax and should be declared as income on your annual return.