Bonus (CBA 90): Social security services and Treasury accept the higher maximum for the year 2009

The bonus which is granted within the framework of a bonus plan providing "advantages that are linked to results" is not subject to tax or the regular social security contributions if the bonus does not exceed a maximum which is index-linked (only a special contribution of 33% must be paid by the employer on the amount of the advantage that is granted).

In our Newsflash of 11 December 2009, we indicated that for the year 2010 this index-linked maximum was fixed at 2.299 EUR. The amount applicable in 2009 was fixed at 2.314 EUR. The reduction is explained by the decrease in the health index.

If the bonus paid exceeds the yearly maximum, the part of the bonus which exceeds this maximum is liable to taxes and to the normal social security contributions. The bonus plans which were concluded in 2009 and for which the then applicable maximum had been taken into consideration, (but which are paid in 2010) risk to be taxed on the difference of 15 EUR.

The Management committee of the Belgian social security services and the administration department of the Finance FPS have decided nevertheless to retain as maximum amount applicable for 2010 the maximum set for 2009 (i.e. 2.314,00 EUR) on the basis of "an administrative point of view".

In practice, this means that the bonuses which are paid in 2010, but which are mainly related to performance in 2009, enjoy, exceptionally, the higher maximum set for 2009, i.e. 2.314 EUR.