The PRSI on investment income for 2020 in the given scenario is:

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Prepare for the QFA Investments Exam 1. Study with flashcards and multiple-choice questions with detailed explanations. Enhance your understanding and succeed on your exam!

Multiple Choice

The PRSI on investment income for 2020 in the given scenario is:

Explanation:
Investment income isn’t subject to PRSI. PRSI is applied to earned income from work (salary, wages, self-employment) and certain other active income, but passive investment earnings like interest, dividends, or rental income don’t attract PRSI. So for 2020, the PRSI charge on investment income would be zero. The other amounts would only apply if PRSI were charged on earnings, which isn’t the case for investment income. USC and income tax may still apply to investment income, but not PRSI.

Investment income isn’t subject to PRSI. PRSI is applied to earned income from work (salary, wages, self-employment) and certain other active income, but passive investment earnings like interest, dividends, or rental income don’t attract PRSI. So for 2020, the PRSI charge on investment income would be zero. The other amounts would only apply if PRSI were charged on earnings, which isn’t the case for investment income. USC and income tax may still apply to investment income, but not PRSI.

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