We specify that the fiscal treatment of the voluntary pension is differentiated for the contribution borne by the employer and the contribution borne by the employee who obtains income from salaries at the basic position.
- Contribution for optional pensions – carried out by the employee:
For the incomes from salaries realized at the basic position, according to article 78 of the Fiscal Code, from the calculation base of the tax on incomes from salaries are also deducted the contributions to the voluntary pension funds according to Law no. 204/2006, with the subsequent modifications and completions, and those on voluntary pension schemes, thus qualified in accordance with the legislation on voluntary pensions by the Financial Supervisory Authority, administered by authorized entities established in Member States of the European Union or belonging to the European Economic Area, supported by employees, so that at the year should not exceed the equivalent in lei of the amount of 400 euros.
In the case of amounts paid directly by the employee who has the quality of participant in an optional pension fund, for determining the calculation basis of the income tax from salaries, the contributions paid to the voluntary pension funds according to Law no. 204/2006 are deducted from the income the month in which the payment of the contribution was made, within the limit of the realized income, based on the supporting documents issued by the voluntary pension fund.
We specify that the deduction of these contributions is made only on the basis of the documents regarding the qualification of the respective voluntary pension funds, issued by the Financial Supervisory Authority (ASF), at the employee’s request.
Therefore, during the year the payer of income from salaries cumulates the amounts in euros, provided in Article 78 paragraph (2) letter a) point (iii) and (iv) of the Fiscal Code, and verifies the compliance with the deductible limit provided by law. For the verification of the inclusion in the annual limit, the exchange rate used to determine the equivalent in euro is the leu / euro exchange rate communicated by the National Bank of Romania, in force on the last day of the month for which the salary rights are paid.
Thus, the contributions to the voluntary pension funds up to the amount of 400 euros per year borne by the employee are deductible when calculating the income tax, where the employee has the basic function.
- Contribution for optional pensions – carried out by the employer:
The employer has the possibility to pay the contribution to the voluntary pension fund for the benefit of its own employees.
At company level, expenses are deductible when calculating tax, in accordance with the rules regulated by Article 25 paragraph (2) of Law 227/2015 on the Fiscal Code and point 14 of the rules given in application of this article:
“25. (2) Expenditure on salaries and those assimilated to salaries as defined in Title IV are deductible expenses for the determination of the fiscal result, except for those regulated in paragraphs 3 and 4.”
Methodological norms
„14. Pursuant to the provisions of Article 25 (2) of the Fiscal Code, salary expenses and those assimilated to salaries, as defined according to Title IV Income tax in the Fiscal Code, are deductible expenses for determining the tax result, regardless of the tax regime applicable to them at the level of the individual.”
Regarding the company’s employees, up to the amount of 400 euros per year for each person, the contribution to the voluntary pension fund does not represent income of a salary nature nor is compulsory social insurance due for it, according to article 76 paragraph (4) letter s) of the Fiscal Code, in conjunction with Article 142 (s) (6) (6), Article 157 (2), Article 220 ^ 4 (2) of the same legislation:
“76. (4) The following income is not taxable, within the meaning of income tax: s) contributions to an optional pension fund according to Law no. 204/2006, as subsequently amended and supplemented, and those representing contributions to voluntary pension schemes, thus qualified in accordance with the legislation on voluntary pensions by the Financial Supervisory Authority, administered by authorized entities established in Member States of the European Union or belonging to European Economic Area, borne by the employer for his own employees, up to a limit of 400 euros per year for each person; “
„142. The following are not included in the monthly basis for calculating social security contributions:
s) the following benefits received in connection with an addictive activity:
contributions to an optional pension fund according to Law no.204/2006, as subsequently amended and supplemented, and those representing contributions to voluntary pension schemes, thus qualified in accordance with the legislation on voluntary pensions by the Financial Supervisory Authority, administered by authorized entities established in Member States of the European Union or belonging toEuropean Economic Area, as well as voluntary health insurance premiums and medical services provided in the form of a subscription, borne by the employer for his own employees, so that at the level of the year the limits provided for in Article 76 (4) letter s) are not exceeded;t) for non-taxable income, as well as premiums related to professional risk insurance; “
„157.(2) The amounts provided for at Article 76 (4) (d), Article 141 (d) and Article 142 shall not be included in the monthly basis for calculating the social health insurance contribution. “
„220^4.(2) The amounts provided for at Article 142 shall not be included in the monthly basis for calculating the insurance contribution for work.
Accounting monograph proposed for contributions borne by the employer:
Registration the expense representing the contribution to the voluntary pension fund for employees:
6456 “Expenses regarding the contribution of the unit to the voluntary pension funds” = 4381 “Other social debts” analytically the contribution of the unit to the voluntary pension funds
Payment of the contribution to the voluntary pension fund:
4381 „Other social debts” analytically the unit’s contribution to the voluntary pension funds = 5121 „Bank accounts in lei”
Registration of the withholding tax withheld, according to the payroll, for the amount exceeding the annual limit of 400 euros for each employee:
421 “Staff – wages due” = 444 “Wage income tax”
Registration of the social insurance contribution withheld, according to the payroll, for the amount exceeding the annual limit of 400 euros for each employee:
421 “Staff – wages due” = 4315 “Social security contribution”
Registration of the social health insurance contribution withheld, according to the payroll, for the amount exceeding the annual limit of 400 euros for each employee:
421 „Staff – salaries due” = 4316 „Social health insurance contribution”
Registration of the insurance contribution for work, according to the payroll, for the amount exceeding the annual limit of 400 euros for each employee:
646 “Expenditure on insurance contribution for work” = 436 “Insurance contribution for work”
Legal basis:
– Fiscal Code (approved by Law no. 227/2015, published in the Official Gazette no. 688 of 10.09.2015), with subsequent amendments and completions;
– Methodological Norms for the application of the Fiscal Code (approved by HG no. 1/2016);
– Law 204/2006 on voluntary pensions, with subsequent amendments and completions.