The pensions between 15.518€ and 16.650€ will be taxed less

The Minister for Pensions Daniel BACQUELAINE will solve a long-standing problem by presenting to the Chamber of Deputies an amendment to the Programme Act concerning section 154 § 3 of the Tax Code. The amendment is centered on the idea that an increase in gross pensions should also lead to an increase in net pensions.

Thanks to the well-being envelope for 2015-2016 a great number of pensions were increased. However, the gross pensions between EUR 15,518 and EUR 16,650 are not impacted by this increase which is neutralized by the levy of progressive tax exceeding said increase.

The amendment will permit pensioners whose pensions were increased to actually receive higher net pensions.

At the initiative of the Minister for Pensions the necessary funding is provided in the government’s proposed tax shift. Therefore, the measure will apply to pensions received as from 2015.

Minister for Pensions Daniel BACQUELAINE : “I am very pleased that I have found a solution for a long-standing problem and in doing so a lot of pensioners will actually receive higher pensions ”

Explanation

Income is firstly subjected to income tax and secondly to municipal service fees. The latter, which may differ, are calculated on the basis of a percentage of income tax. Initially, section 154 § 3 was adopted without taking municipal service fees into account. In order to solve this problem, the amendment is centered on a 9% increase of the applicable tax rate and this prior to the levy of the municipal service fee in question. This increase will come into effect if the net income is made up entirely of social security benefits or pensions.

Contact

Koen Peumans, spokesperson of Daniel Bacquelaine, Minister for Pensions                                 

0473/81.11.06 -  koen.peumans@bacquelaine.fed.be