Romania's Finance Ministry to increase fiscal incentive for voluntary pensions in September
A proposal to substantially increase fiscal incentives for voluntary
private pensions (3rd pillar) in Romania will be introduced in the
project for the modification of the Fiscal Code, to be promoted by the Romanian Finance Ministry in September and, if adopted,
it will come into force starting 1st of January 2009, market sources
told www.privatepensions.ro. Yesterday evening, CSSPP (Romania's
private pensions regulator), APAPR (the Romanian pension funds
association) and the highest representatives of the Ministry of Economy
and Finance met to discuss proposals for the increase in incentives for
the 3rd pillar and the calendar for adoption of the measures.
"We discussed both about the level of the new fiscal incentives and about the change in philosohpy. We can continue to allow contributions to the 3rd pillar to be deducted from the taxable income or give a total deductibility, that would also include deductibility from other social contributions", Mircea OANCEA, President of CSSPP (photo), told www.privatepensions.ro. He said that representatives from the Ministry of Finance had a good attitude towards the proposal. Also, sources inside Romania's FinMin confirmed that the proposal to increase incentives for 3rd pillar savings will be included in the draft to modify the Fiscal Code, in September.
A month ago, CSSPP proposed to FinMin an increase in fiscal deductibility for contributions towards volutnary private pensions in Romania from 200 EUR per year (both for employee and employer, equaling a possible total of 400 EUR per year) to a progressive scheme of deductibility, that can reach 1,000 EUR per year for each part, meaning a total of 2,000 EUR. At this time, Romania still has the smallest fiscal incentives in Europe when it comes to stimulating voluntary private pensions savings.
A proposal to substantially increase fiscal incentives for voluntary
private pensions (3rd pillar) in Romania will be introduced in the
project for the modification of the Fiscal Code, to be promoted by the Romanian Finance Ministry in September and, if adopted,
it will come into force starting 1st of January 2009, market sources
told www.privatepensions.ro. Yesterday evening, CSSPP (Romania's
private pensions regulator), APAPR (the Romanian pension funds
association) and the highest representatives of the Ministry of Economy
and Finance met to discuss proposals for the increase in incentives for
the 3rd pillar and the calendar for adoption of the measures.