Private pensions: FSA proposes financial incentives to boost market
The Financial Supervisory Authority has proposed an increase in tax incentives for contributions to private pension funds.
According to the proposed amendments to the law “On Voluntary Pension Funds”, the FSA proposes an increase of the annual amount of the not taxed contribution from 200 ALL thousand to ALL 240 thousand per year.
The law of 2009 provides that the contribution made by each member of a pension fund is deducted from his personal income, for tax purposes, but with some restrictions.
This limit is at 15% of the annual gross income, but not more than ALL 200 thousand per year.
An exception are persons aged over 50 years, in which case the amount excluded from tax could reach up to 25% of annual income, but not more than ALL 250 thousand per year.
With the proposed changes, the FSA aims to arouse the interest of individuals to contribute in private pension funds.
After the new tax on personal income in 2014, the advantages of investing in private pension funds have grown, because some of the higher income are exempt from tax.
In particular, those who have gross income from wages at over ALL 130 thousand per month, may exclude a portion of this income tax at the rate 23%, by investing in the form of contributions to a pension fund.
According to data from the Financial Supervisory Authority, the number of members of private pension schemes in 2016 amounted to over 17 thousand individuals.
*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.