Bonus (CBA 90): Social security services modify their point of view regarding the applicable limit

In our newsflash of 11 January 2010 we informed you of the point of view of the Belgian social security services regarding the applicable limit for result-linked bonuses.

We wrote that both the Management Committee of the Belgian social security services and the tax administration had agreed to accept the higher limit of 2009 (2,314.00 EUR) for 2010 as well, on condition that the achieved objectives were related to performance in 2009.In principle, a lower maximum limit will apply for 2010 (2,299.00 EUR).

Premiums granted in 2010 but mainly related to performance in 2009 would thus benefit from the higher limit that was applicable in 2009.

Since then, however, the Management Committee of the Belgian social security services has decided to take a more pragmatic approach in the sense that the social security services now only accept the 2009 limit (2,314.00 EUR) for bonus schemes that were initiated at the latest on 30 September 2009 and that stipulate that the amounts will be paid in 2010. (This is the promulgation date of the health index of September 2009, on the basis of which the maximum limit for 2010 could be determined.)

For bonus schemes initiated as from 1 October 2009 the situation is different, since the limit for 2010 (2,299.00 EUR) was, in principle, known as from that date.

The tax administration follows this new point of view of the social security services.

In this context, we also want to draw your attention to the fact that bonus schemes relating to the entire calendar year 2010 must be submitted before 30 April 2010.