The prospect of a failure in Congress in the processing of the bill to promote employment pension plans has moved the Government to rely on the opposition to save one of the milestones in the series of compromised pension system reforms with Brussels.
The presentation held today in Congress to negotiate amendments has been rushed to the end by the Government, which has not yielded until late in the afternoon to the requests made by the PP and Citizens to approve the rule that will regulate these complementary prevention systems . The parliamentary committee will meet next week to approve the bill in mid-June.
The relevance of these tax incentives lies in the fact that without them companies found it difficult for the pension plans projected by the Government to take off to cover up to 80% of affiliated workers and reach assets of up to 100,000 million euros. These pension plans are designed to complement the future contributory benefits that Social Security will pay and that -unless the reform of the system is completed- may not be as generous as they are currently.
In fact, a few weeks ago, before the regulation was processed, the construction sector signed a preliminary collective bargaining agreement that included a pension and employment plan for 1.3 million workers. The National Confederation of Construction (CNC) warned, however, that without the approval of incentives in the Corporation Tax, the first pension plan resulting from the new norm would be in danger.
It is at this point where the opposition has asserted its votes against a very divided coalition of support for the Government. Finally, the Government’s commitment has been to assume amendment 41 proposed by the popular deputy Tomás Cabezón by which “deductions for business contributions to business social security systems” are set. These deductions have been accepted at the last moment by the Ministry of Finance, which until last week denied being interested in applying them, endangering the approval of the reform proposed by the Minister of Social Security, José Luis Escrivá.
The quota that companies may deduct from Corporation tax will amount to 10% for contributions With the aim of encouraging complementary savings through these instruments, the taxable person may make a deduction in the full quota of 10% of the business contributions attributed to favor of workers with annual gross remuneration of less than 27,000 euros, provided that such contributions are made to employment pension plans, corporate social welfare plans and social welfare mutual societies that act as a social welfare instrument of which the taxpayer is the promoter . Above that salary level, the deduction will be applied to the proportional part of the business contributions that correspond to the amount of the remuneration.
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