The Bill (Reg.No.1113) was drafted to specify more accurately matters related to Value-Added- Tax Assessment for Non-State Retirement Fund Administration Services. Committee members stressed that, ‘these services are the only ones on which Value-Added Tax is assessed, from all the services rendered to financial market players´.
The Bill creates a more accurate wording of Clause 3 of the current Law, to the effect that ‘operations connected with providing services related to obligatory Social and Retirement Insurance, Non-State Retirement Benefits, and attraction and servicing of Retirement Deposits´, are not subject to VAT taxation´, by adding to it, ‘ including the administration of Non-State Retirement Funds´.
The People´s Deputies believe that this modification is ‘justified in terms of establishing the same Taxation rules for Non-state Retirement Benefit system entities´. The passing of this Bill will also create favourable conditions for enhancing the effectiveness of the administration of the Non-State Retirement Benefit system, and leverage for is entities. It will establish equal conditions for payments by Non-State Retirement Funds and Insurance Companies, and most importantly, increase the level of Retirement Benefits to members of the Non-state Retirement Benefit system.