CSSPP: We shall propose the Ministry of Finance a EUR 1,000 deductibility per year for voluntary pensions
The Private Pension Supervisory Commission (CSSPP) shall propose the Ministry of Economy and Finance an increase up to over EUR 1,000 per year for the fiscal deductibility on voluntary private pensions (Pillar III) to stimulate savings in the system, stated Mircea OANCEA, President of the institution, for the portal www.privatepensions.ro.
"We have pledged our support for the increase of the fiscal deductibility for voluntary private pensions on several occasions. Soon, in the second semester, we shall send an official request to the Ministry of Finance to ask for a higher deductibility, over EUR 1,000 per year, for voluntary private pensions. This provision must be included in the Budget Law for 2009, it also requires the amendment of the Fiscal Code, and this could become a basis for amending Law no. 204/2006 on voluntary pensions”, stated Mircea OANCEA.
The contributions to the voluntary private pensions are now deductible from the income tax (for the employee) and from the profit tax (for the employer), up to EUR 200 per year for each party. This deductibility places Romania on the last position in Europe in this respect: all states encourage saving for retirement with more considerable fiscal facilities, both for pillar II and other similar private pension plans.
“I have discussed this issue with Minister Varujan Vosganian on several occasions, and he understood the need to deal with it. We want to propose a fiscal deductibility of at least EUR 1,000 per year for the contributions to voluntary private pensions. However, we don’t want to exaggerate, thus risking getting no increase whatsoever. Eventually, even an increase to EUR 500 to 1,000 per year is better than nothing. Also, we may consider a gradual deductibility as well, depending on the amounts saved in the voluntary private pension system. Equally, we can adopt one of the models from the neighboring states. With a gradual deductibility and other provisions encouraging the contributions to this system”, added OANCEA.
