Tax and investment, discussion between government and pension funds

For years, the pension funds of Italian professionals (20 institutions and 1.6 million members) have been demanding a reduction of taxes on their investments. The minimum goal is to lower the taxation on capital gains from 26 to 20 per cent. "We still think that the capital gains of the mandatory pension funds should have zero taxation because it is thanks to the investments that we are able to pay pensions without costing the state," says Alberto Oliveti, president of Adepp, the association of private pension funds. "So far, the conditions of public accounts have not even allowed us to lower the rate from 26% to 20%, which is reserved for voluntary pension funds. Oliveti, who is also president of Enpam (doctors), however, goes beyond the issue of simply cutting taxes: 'Since we pay hundreds of millions of euros in taxes every year anyway, it would be desirable to at least have a purpose taxation system to give professionals enrolled in the funds some advantage or social right that our taxes guarantee to others'.

Important funds such as those of engineers and architects (Inarcassa) and psychologists (Enpap) are aligned with Oliveti's position. "After undersecretary Freni's meeting with Adepp's top management, we have heard nothing more about the investment regulation and tax relief,' explains Massimo Garbari, president of Inarcassa. 'However, a reduction in taxation on the funds' investments is fundamental. On this point we are aligned with our association. We also hope for developments in the tax regulations to make investments in venture capital funds easier'.

In the same vein Federico Conte, Enpap president: 'As pension funds, we pay 26% tax on capital gains and we still pay to the tax authorities when paying out pensions to members. We ask, at least for the taxation of returns, to be put on an equal footing with supplementary pension funds. I would also add that, for the tax relief linked to venture capital investments, some modalities are still unclear'.

Discussions with the government are ongoing. There are two measures in particular that closely affect the interests of pension funds and could play a key role in their decision to invest in the real economy.

One of these is the tax delegation law (111/2023), which provides for 'a substitutive taxation on income of a financial nature earned by private compulsory social security institutions'; the funds would like, through this modality, to introduce a taxation of purpose to finance welfare and assistance for members. According to rumours, the government would instead like the tax benefits to facilitate the institutions' investments in national supply chains, companies and production sectors. The tax delegation expires at the end of August 2026: one of the planned implementing decrees will be passed by then.