Insurance premiums could become deductible under the new Fiscal Code, up to 200 euros a year, says the deputy-chairperson of the budget-finance committee of the Chamber of Deputies, Gratiela Iordache.
Deductibility of the insurance and reinsurance premiums is provided for in the law that regulates the insurance market, but has been impossible to apply until now because it was not in the Fiscal Code.
"The draft to modify the Fiscal Code could reach the agenda of the Chamber of Deputies next week. I will propose an amendment that will include deductibility of insurance premiums, especially of those for life insurance, of up to 200 euros a year," stated Iordache, who attended the "Debts are going up. Who do we build our financial security?" seminar organised by ZIARUL FINANCIAR and ING Asigurari de Viata.
"Even though 200 euros is quite a small amount, we don't want to create a gap between the deductibility of expenses on private pensions and the expenses on insurance policies," Iordache added.
The non-deductibility of the insurance premiums is a hurdle employers buying insurance policies for their employees are faced with. Alternatively, they can leave it to the employees to pay the insurance-related tax. This is what Lafarge Romcim did, who bought life insurance policies for 1,400 employees.
"Anything that is completely free is not well valorised, so that the company pays the policy and the tax falls upon the employee," says Gabriel Matauan, human resources and public relations manager of Lafarge Romcim.
The introduction of the deductibility of insurance premiums could give a boost to the life insurance market, which reached almost 290 million euros last year.
At present, the protection deficit in Romania, which would be covered by traditional life insurance policies stands at 170 billion RON (about 48 billion euros), estimates ING Asigurari de Viata (Life Insurance) chief executive Bram Boon.
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