On 22 August the Romanian Government Decision 613 of 2013 for the amendment and supplement of the methodological norms for the application of Law 571 of 2003 regulating the Fiscal Code, as approved by Government Decision 44 of 2004 (“Decision 613/2013”) was published in the Official Gazette.
The new element brought into force by Decision 613/2013 is that it allows to deduct expenses representing contributions to voluntary pension schemes established not only in Romania, but also in the member states of the EU and EEA. However, an assessment of that voluntary pension scheme by the FSA is expressly required.
By enacting Decision 613/2013 the intention of the Government was to clarify the fiscal regime applicable to contributions to voluntary private pension schemes. More specifically, it is now regulated that:
- The expenses representing contributions to voluntary pension schemes under Romanian law (i.e. 3rd pillar pension funds), incurred by the employer on behalf of an employee (who is a participant to a voluntary pension fund) or by the employee himself (if he pays the contributions directly into the voluntary pension scheme) are deductible within a fiscal year for each participant up to an amount which is equivalent to EUR 400.
- The same level of deduction (i.e. equivalent to EUR 400 within a fiscal year for each participant) is applied if the expenses represent contributions to voluntary pension schemes and are paid to authorized entities established in the EU or EEA member states.
- The deduction of the expenses representing contributions to the voluntary pension funds mentioned above is possible only if supported by documents issued by the Romanian Financial Supervisory Authority (“FSA”) which evaluates the respective voluntary pension funds. Such an assessment is carried out by the FSA upon the express request of an employer or of an employee (if he pays the contributions directly into the voluntary pension scheme).
Following Decision 613/2013, the FSA released on 29 August an Information Note which clarifies that for the contributions to Romanian voluntary pension schemes, which are authorized, controlled and supervised by the FSA, the performance of an additional assessment is not required. For the EU and EEA voluntary pension schemes, the FSA will undertake the assessment on a case by case basis upon the specific request of an interested person.