Careers spanning 45 years now eligible for favourable tax treatment - AG Employee Benefits

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Published on 11/04/2019

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Careers spanning 45 years now eligible for favourable tax treatment

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Staff members who take statutory retirement prior to reaching the age of 65 (state pension age) are now eligible for a lower tax rate (10%) on their supplementary pension benefits if they have worked for a full 45 years.

This new measure applies to staff members who claim their supplementary pension prior to reaching statutory retirement age but who have been effectively active ​for a full 45 years by the time they retire.

This law was published in the Belgian Official Journal on 15 March 2019.

Critical issue
The law states that "the conditions for a full career" must be fulfilled, i.e. 45 years of service as per the applicable legislation on pensions.

Retroactive effect

The new measures are supposed to take effect on 1 January 2019.

What if the benefits have already been collected?
The competent authorities are currently looking into options that would allow plan participants to claim a refund or credit on overpaid withholding taxes reported on their tax declaration.

What approach will AG Insurance be taking?
For your staff members who have not yet claimed their supplementary pension benefits, AG Insurance will start applying the lower withholding tax rate, effective immediately.

Note, however, that eligibility will be contingent on the following two criteria:

  • Plan participants must have completed 45 years of service
  • They must prove that they were actively employed up until their retirement age 



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