Fiscal incentives for voluntary pensions, increased from 200 to 400 EUR / year starting 2009
ROMANIA. Fiscal incentives for voluntary pensions (3rd pillar pension) contributions in Romania will be increased from 200 EUR to 400 EUR per year, for each employee and employer, starting 1st of January 2009, Romania's Government announced yesterday. In other words, contributions to voluntary pension plans will be tax free up to 400 EUR/year if an individual contributes by himself and up to 800 EUR/year if the employer also contributes on behalf of the respective employee. Also, the news is that contributions to voluntary pension plans will be deductible from all taxes (16% flat tax and also social contributions), compared to the current situation, when contributions are only deductible from the flat 16% income tax.
The increase is above expectations, the proposal initially was 200 to 250 EUR per year, i.e. from 400 to 500 EUR per year, in the case of mixed contribution.
09.10.2008
