- 17 Apr 2013
The tax administration maintains the maximum amount of 2,488 EUR per year for the exemption from taxes of the collective bonus.
The collective bonus under CBA n° 90 benefits from a particularly advantageous social security and tax regime up to a maximum annual amount. Until 31 December 2012, this maximum amount was harmonized for social security and tax purposes.
On 1 January 2013, changes occurred with respect to social security, namely an increase to 3,100 EUR in the maximum amount exempted and the introduction of a solidarity contribution of 13.07 %.
The tax law has not been amended yet and, according to our contacts within the tax administration, such amendment is not to be expected in the near future. This means that the maximum annual amount is still 2,488 EUR per year (amount for 2013).
Once the threshold of 2,488 EUR is exceeded (after deduction of the new solidarity contribution of 13.07 %), the employer must withhold the income tax on wages on the excess part. This means that an income tax on wages will have to be withheld on any collective bonus exceeding 2,862 EUR.
> Action point:
We recommend to check the wording of your CBA no. 90 conventions currently in force for the year 2013 and, when necessary, to retain the withholding tax on wages.