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Undeducted purchase price of a foreign pension or annuity

Deductions from foreign pension or annuity income that has an undeducted purchase price.

Last updated 25 April 2023

You can claim a deduction to reduce the taxable amount on income you receive from a foreign pension or annuity that also has an undeducted purchase price (UPP).

Only some foreign pensions and annuities have a UPP. The UPP is the amount you contribute towards the purchase price of your pension or annuity – your personal contributions.

The part of your annual pension or annuity income which represents a return to you of your personal contributions is tax-free. This tax-free portion is the deductible amount of the UPP.

If you receive a foreign pension or annuity and you want to know the amount you can claim a deduction for in relation to the UPP. You need to Request for a determination of the deductible amount of UPP of a foreign pension or annuity.