(1) The Principal Act is amended -

(a) in section 118, by the insertion of the following subsection after subsection (5L):

"(5M) Subsection (1) shall not apply to expense incurred by the body corporate in the provision for an employee (within the meaning of Chapter 2E of Part 30) of a contribution (within the meaning of Chapter 2E of Part 30).",

(b) in Part 7, by the insertion of the following section after section 192P:

"192Q. Exemption in respect of State contribution under automatic enrolment retirement savings system

A State contribution (within the meaning of the Automatic Enrolment Retirement Savings System Act 2024) shall be exempt from income tax and shall not be reckoned in computing total income for the purposes of the Income Tax Acts or in computing amounts chargeable to universal social charge in accordance with Part 18D.",

(c) in section 246(3) -

(i) in paragraph (i), by the substitution of "such subsidiary," for "such subsidiary, or",

(ii) in paragraph (j), by the substitution of "such subsidiary," for "such subsidiary.", and