BOV Asset Management has been granted the licence to provide investment management for personal retirement schemes, occupational retirement schemes and retirement funds in terms of the Retirement Pension Act.

BOV Asset Management requested the extension of the licence following the legal notice that was issued last year intended to promote Voluntary Occupational Pension Schemes in Malta.

In the 2017 budget, the government announced the introduction of various fiscal incentives to encourage employers to set up Voluntary Occupational Pension Schemes for their employees. Occupational retirement schemes may be established for or by an employer/s or an association of employers whose principal purpose is the provision of retirement benefits to employees.

These new schemes allow employers and employees to make regular savings with the intention to access such accumulated wealth during their retirement years and thus help maintain their standard of living during retirement.

Both employers and employees contributing to such schemes will benefit from favourable tax treatment on their contributions when saving for their retirement. Employers who adopt the Second Pillar Voluntary Occupational Pension Scheme will benefit from various tax incentives, as contributions are tax deductible as a business expense.

Furthermore, the employer will receive a tax credit on contributions paid on behalf of every employee. Self-employed individuals are eligible for these schemes. Similar tax incentives apply to the employees who engage in this scheme. Contributions will not be taxed since income is in the form of fringe benefits. They would be eligible for a tax credit, depending on the amount contributed per year by the employee.