Changes To Non-Recurrent Result-Linked Bonuses For 2013!

A Belgian employer may grant a benefit to his employees in the form of a non-recurrent result-linked bonus, which qualifies for beneficial tax, labour and social security law treatment: up to a certain maximum amount, the benefit is exempt from income tax and, next to a new 13.07% employee solidarity contribution, only a special (final) social security contribution of 33% is due by the employer.

The Programme Act of 27 December 2012 modified the existing legal framework for non-recurrent result-linked bonuses as of 1 January 2013 by:

• first, increasing the maximum amount qualifying for beneficial treatment for social security and an exemption for labour law purposes to €3,100 per employee per annum (the amount of the benefit in excess of the maximum is considered salary and is subject to regular tax withholdings and social security contributions), and