Supplementary voluntary retirement provision at the employer’s expense

What are the advantages?
IN THE CASE OF SUPPLEMENTARY VOLUNTARY RETIREMENT PROVISION AT THE EMPLOYER’S EXPENSE, the employers avail of tax preferences for the expenses made for contributions as per the Corporate Income Tax Act (CITA).Contributions at the employer’s expenses, which are recognized as an expense for tax and accounting purposes and relieved of compulsory insurance contributions for the party and for the employer, amount to 60 lv. per employee, monthly (as per article 213, paragraph 1 of the CITA). When a contribution exceeds 60 lv., 10% corporate tax is paid for the surplus. The employer does not owe insurance contributions for the amount exceeded. The insured party does not owe compulsory personal insurance contributions and tax as per the PITA. The employer may lay down conditions for the voluntary retirement provision of his employees, as well as differentiate the contributions paid for his employees depending on their experience, age, position level, etc.