- 21 Aug 2013
After months of uncertainty the maximum tax exemption amount of the collective bonus granted in the framework of CBA 90 is in the end being raised to 2.695 EUR.When paying collective bonuses you must take into account the new fiscal limit.
In the framework of CBA 90, every employer can grant a collective bonus to his employees following a special procedure described in the CBA. This bonus benefits from a favourable social and fiscal treatment.
The collective bonus is exempt from traditional social security contributions for a maximum of 3.100 EUR per employee and per year (amount for 2013). However, a special employer contribution of 33% is due. Since 1 January of this year a personal solidarity contribution of 13,07% must also be withheld. It is not coincidental that these contributions are approximately equal to the classical social security contributions for white-collar workers.
The collective bonus is also exempt from taxes. Until recently, the maximum tax-exempt amount was equal to 2.488 EUR, which resulted in a discrepancy between the social and fiscal treatment of the bonus. This has now been rectified. Henceforth, the maximum tax-exempt amount is 2.695 EUR (amount for 2013) which is 3.100 EUR less the personal solidarity contribution of 13,07%.
The new tax exemption limit is retroactive to 1 January 2013.
> Action point
When paying collective bonuses you must take into account the new fiscal limit.
You still can set up a tax-efficient bonus plan for the last months of 2013.