As we read in the government announcement, the greatest value of PEPPs “will be the possibility of cross-border investment, as well as portability of PEPPs when changing residence from one Member State to another”. Due to its similarity to IKE, the European system is to be taxed in a similar way. This means that there will be exemptions from income generated while saving on a PEPP sub-account. This will also apply to income generated at the time of withdrawing funds from such a sub-account, after the saving goal has been achieved.
PEPP, or European Pension. What will it look like?
During the year, it will be possible to pay into PEPP a maximum of three times the forecast average monthly in the national economy for a given year. This year it would be a maximum of PLN 20,805. The costs and fees of running a PEPP cannot be higher than 1% of capital accumulated in the account. The pension paid from these funds will be exempt from flat-rate income tax. In this way, equality is to be maintained between people who save under this product in Poland and those who do it in other countries. Changing your place of residence to another European Union country will allow you to continue saving on PEPPs that you bought in the previous country. In addition, we will not lose the right to the benefits of investing in the same product without interruption. In Poland, it will supervise PEPP
Source: Gazeta
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