Meteorologia

  • 18 OCTOBER 2024
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MIN 16º MÁX 22º

PPR? Pan-European personal pension product to have same tax benefit

The Council of Ministers today approved a bill that eases the taxation of financial savings instruments by granting the pan-european personal pension product (PEPP) the tax benefit of retirement savings plans (PPR).

PPR? Pan-European personal pension product to have same tax benefit
Notícias ao Minuto

19:17 - 27/05/24 por Lusa

Economia PPR

The measure, announced by the Minister of the Presidency, António Leitão Amaro, at the end of this extraordinary Council of Ministers, fulfills one of the commitments included in the Recovery and Resilience Program (PRR), and, as it deals with tax matters, will now be submitted for parliamentary consideration and approval.

"This is a goal and a commitment of the PRR that required Portugal to improve taxation on investment in capital markets and there are a set of changes in terms of IRS that allow this greater incentive to save in financial instruments, including a more favorable tax regime similar to the one that exists for PPRs in Portugal for an individual pan-European savings product", said the minister.

The aim is to allow a "greater incentive to save" through this pan-European savings product, granting it the tax benefit in terms of IRS enjoyed by PPRs or Retirement Certificates (known as State PPRs).

The PEPP is a product regulated by European rules and the extension of the PPR tax regime to this pan-European product aims to make it more attractive to Portuguese savers.

Leitão Amaro also said that this measure does not yet correspond to the fulfillment of that line of the Government program that aims at a significant improvement in terms of IRS on savings, noting that the vast majority of the rules of this diploma had been prepared by the previous Government, within the scope of the PRR commitments.

Part of the annual amount applied to PPRs can be deducted from IRS up to a limit of 400 euros per year if the policyholder is up to 35 years old. For those between 35 and 50 years old, the deductible limit is 350 euros and above 50 years old, up to 300 euros are deductible.

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