Laws

Law 10 197, date 10.12.2009 "On voluntary pension funds"

The purpose of the law is to set the necessary standards:

a) for the effective management of voluntary pension funds through investment diversification with the goal to increase
    contributions to pension funds;
b) for the supervision of the “defined contribution” voluntary private pension fund business so as to ensure protection of
    pension fund unit-holders,
c)  to promote the stability, security and good governance of the pool of pension fund assets,
ç) the licensing and oversight of the pension fund management company, the occupational pension schemes, the
    depositary of the pension fund assets and all other related matters.

The entry into force of the law no. 156/2014” For some amendments to the law no. 8438 dated 28.12.1998 “On personal income tax”, as amended, provided tax facilities and financial treatments of contributions to pension funds.

Law no. 156/2014 excludes following elements from taxable incomes:

a.    the contribution made by a member of a voluntary pension fund up to the amount specified in the Law on the Voluntary Pension Funds as well as contributions made by the employer or any other contributor on behalf of the member of the voluntary pension fund shall be considered exempt income for personal income tax purposes.

b.    Exempt personal income shall be considered also the return on investment, including the gains from the investments made with the pension funds’ asset.
Voluntary pension funds managed by the management company of the voluntary pension fund shall be considered exempt income for the purposes of corporate income tax calculations.

   Entire document