- 18 Dec 2017
For “CBA 90” bonuses to be paid in 2018, the maximum exempted amount is higher than last year since the indexed ceilings have been fixed at EUR 3,313 (social security ceiling) and at EUR 2,880 (fiscal ceiling).
The bonus, granted within the framework of a plan for granting non recurrent advantages depending on results, is within the limits of a yearly indexed ceiling free of taxes and normal social security charges.
The indexed amounts for 2018 are now known.
For the exemption of normal social security charges, the maximum indexed amount is equal to EUR 3,313 gross (as opposed to EUR 3,255 for this year 2017).
However, it should be noted that, since 1 January 2013, the “CBA 90” bonus is subject not only to a special employer’s social security contribution of 33%, but also to a personal solidarity contribution of 13.07% that is to be deducted from the gross amount of the bonus.
For the tax exemption, the maximum indexed amount is fixed at EUR 2,880 for the year 2018 (i.e., EUR 3,313 minus the personal solidarity contribution of 13.07%).
If these ceilings are exceeded, the surplus is subject to normal social security charges and to income tax.
> Action point
When granting “CBA 90” bonuses in 2018, you should take into account the new maximum exemption of EUR 3,313 gross for the social security aspect and EUR 2,880 for the fiscal aspect.