Is the EE part in a pension plan deductible for the Payroll tax and social premiums base salary?

  • Modified on: Tue, 11 Apr, 2023 at 3:54 PM

Employee contributions to a pension plan are not deductible for the purposes of determining the wage tax and social premium base salary. This is different from the Dutch (and Canadian) systems where, in the case of a registered pension plan, the taxable income is reduced by the employee contributions to a pension plan. In the BVI, once the pension plan is approved, the employer portion is not taxable and the employee contributions do not decrease the base salaries for taxes and social premiums.

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