Taxes in Europe Database v2
Article 68 of the law concerning social provisions of 30 March 1994. Royal decree of 16 December 1996 (confirmed by the law of 13 June 1997).
Social security, pensions sector.
Beneficary of pensions.
All pensions (old age, survival, complementary pensions,…) and comparable payments allocated to (former) employees and self-employed persons.
Basis of assessment is the gross pension amount.
Several exemptions, e.g. no solidarity levy on vacation pay for pensioners, on pension savings, on revenues from 'third pillar' insurances, … .
The rate depends on the global monthly gross pension amount (P). While the total levy varies from 0% to 2%, the marginal levy can reach up to 50%. The thresholds (Th) differ for pensioners with or without dependants (see special feature).
The contribution is withheld on every pension payment (mostly monthly frequency).
The thresholds (Th) differ for pensioners with or without dependant and are linked to the consumer price index.
Non-employed; includes the tax revenue of some other minor contributions, such as the funeral benefit levy on public sector pensions