OPEN LETTER/ Come to the dialogue and listen to me speak, otherwise I will cut off your scholarships, you will rot in prison. Please!

 Kliko këtu për të tjera
Voxpress:

What are the fiscal exemptions for private pensions?

2024-02-02 12:40:10Biznes SHKRUAR NGA REDAKSIA VOX

What are the fiscal exemptions for private pensions?

In November of last year, a new law came into force that brought innovation to private pension funds and aimed to encourage citizens' participation in the scheme. The legal changes contain further increases in fiscal incentives for contributions to private pension funds. Thus, according to the new law, the maximum monthly tax exemption limit increases up to the level of the approved minimum salary, which is currently recorded at 40,000 ALL per month.

From this incentive, the amount of contributions exempted from taxes reaches up to 480 thousand ALL per year or 140% more compared to the threshold that was set in the old law of 200 thousand ALL. Specifically, Article 156 of the law states that "The contribution made by each member of a pension fund is deducted from his personal income for the tatami effect. Investment returns, including capital gains from investments made with pension fund assets are not subject to taxation, neither for the pension fund itself nor for the management company.

Contributions made by the employer and any other contributor, in the name and on behalf of the member of a pension fund, for fiscal effects, are not assessed as personal income of the member. The maximum monthly limit for tax benefits is up to the level of the nationally approved minimum wage.

Contributions and private pensions paid by the employer in favor of the employee will also be exempt from tax to the same extent.

Specifically, according to Article 157 of the law "Contributions made by the employer in the interest of its employees to a pension fund are assessed as operating expenses up to the annual amount for each employee, equal to the annual minimum wage approved at the national level, and this amount is assessed recognized expense for income tax purposes".

The law also provides that pensions are not taxed in the benefit for the part of the contributions, but only for the return on the investment, provided that the withdrawal is made with monthly payments spread over at least two years and not immediately, after fulfilling the legal conditions for private pension benefits.

In case of premature withdrawal of the pension fund, i.e. before fulfilling the legal conditions, the withdrawn value will be taxed at the legal income tax rate, which is 15%.


Në përputhje me standarded JTI

Video

SHIKO KANALIN NE YOUTUBE
×