NON-RECURRING BONUSES - MAXIMUM TAX EXEMPTED AMOUNT
28 April 2013
As published earlier on our website, the maximum amount of non-recurring bonuses has been increased to EUR 3,100 for social law purposes (Programme Law of 27 December 2012).
A bill of law has been introduced with the Chamber of Deputies to increase the maximum tax exempted amount.
These bonuses are not considered as remuneration for social security purposes, as long as they do not exceed the maximum amount of EUR 3,100 (per calendar year and per employee). This implies that they are not subjected to the regular social security contributions. However, they are subject to a special employers contribution (33% of the amount of the bonus) and since the aforementioned Programme Law, they are also subjected to a solidarity contribution of 13.07% in hands of the employee.
There is also a tax advantage connected to the non-recurring bonuses: they are not subjected to income taxes as long as they do not exceed a fixed maximum amount. Currently, this maximum has been determined at EUR 2,200 (EUR 2,488 for 2013). This threshold has not been adjusted in the aforementioned Programme Law.
However, it was never the intention of the legislator to create an inconsistency between tax and social law for that matter. For this reason, a bill has been introduced with the Chamber of Deputies on 17 April 2013. It proposes to modify article 38 of the Belgian Income Tax Code which lays down the maximum tax free amount. The current maximum of EUR 2,200 would be increased to EUR 2,695. This corresponds with the maximum amount of EUR 3,100 for social security purposes, reduced by 13.07% solidarity contribution introduced by the aforementioned Program Law.