Government accepts cut in corporation tax that PP and citizens request to save pension plans in companies


Jose Luis Escrive has received the green light from the Ministry of Finance to include tax incentives for companies in new pension and employment schemes. The government relies on the opposition to carry out a reform for which it did not have parliamentary support.

Social Security Minister, Josio
Social Security Minister, Jose Luis Escrive.fernando alvaradoEFE

The potential for failure in Congress to process a bill to promote employment pension schemes has prompted the government to rely on the opposition to save the milestone in a series of pension system reforms committed with Brussels.

The presentation held today in Congress to transact the amendments has been brought to an end by the government, late in the afternoon for requests made by PP and citizens to approve the rule governing these supplemental containment systems. has not arrived. The parliamentary committee is expected to meet next week to approve the bill in mid-June.

The relevance of these tax incentives lies in the fact that without them companies find it difficult for government-estimated pension plans to cover 80% of allied workers and access assets of up to €100,000 million. These pension plans are designed to supplement future contributory benefits paid out by Social Security and which — until system reforms are completed — may not be as generous as they currently are.

In fact, before the regulation was processed, the construction sector signed a preliminary collective agreement a few weeks ago that included a pension and employment scheme for 1.3 million workers. However, the National Confederation of Construction (CNC) has warned that without the approval of incentives in corporation tax, the first pension scheme would be in jeopardy as a result of the new norm.

It is at this point that the opposition claims its votes against a very divided coalition of government support. Finally, the government’s commitment has been to heed Amendment 41, proposed by popular deputy Tomas Cabazón, which establishes a “deduction for professional contributions to professional social security systems”. These cuts have been accepted at the last minute by the finance ministry, which until last week refused to be interested in implementing them, jeopardizing approval of the reform proposed by the social security minister, Jose Luis Escrive.

The quota deducting corporation tax from corporation tax shall be 10% for contributions with an annual gross remuneration of less than EUR 27,000, provided that such contributions are made to employment pension schemes, corporate social security schemes and social security reciprocal societies. which act as a social security instrument of which the taxpayer is the promoter. Above that pay level, the deduction will apply to a proportionate portion of the business contribution which is commensurate with the amount of remuneration.

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