Amendments to the Tax Code related to facultative pension funds have come into force.
The State Tax Service announced that, according to the amendments, the term "qualified non-state pension fund" has been replaced with the term "facultative pension fund" (FPF). At the same time, services related to the management of facultative pension funds are exempt from VAT without the right to a deduction. Under the new provisions, FPFs are considered to be funds established and operating under the Optional Pension Funds Act. An optional pension fund, according to the law, is created without legal status, established by means of a simple partnership agreement concluded in writing, and operates on the principle of financing by capitalization solely for the purpose of providing optional pensions. One of the provisions of the document envisages that the contributions made by the employer on behalf of the employee or by the employee himself to the FPF established abroad are deducted from its gross income up to 15% of the income earned by it in the tax year. // 14.06.2023 – InfoMarket
