2023 Tax Ceilings
What a debut for the tax figures in this new year, the new wage ceilings for calculating social security supplements for wage earners and the self-employed are proverbially going through the ceiling!
The only status quo can be reported for the maximum deductible premiums in the 3rd pension pillar. For individual pension savings, these premiums have again stuck at EUR 990 for a 30% saving and EUR 1,270 for a 25% saving. All amounts between 990 and 1,188 are less interesting because of the lower tax benefit in relation to the higher savings amount. Also for long-term savings, the maximum amount is frozen for another year at EUR 2,350 (or the 2021 level).
Fortunately, the revaluation coefficient for determining the maximum VAPZ premium has not been stuck. In addition to the 3rd pillar pension savings, active people with self-employed status can save in a tax advantageous way via the PSPS or the Private Supplementary Pension for the Self-employed amounting to 8.17% of their professional income with a maximum of EUR 3,859.40. If the VAPZ (PSP)S has a 'social character', the amount rises to 9.40% of income with a maximum of EUR 4,440.43. You calculate the allowed premium by multiplying the 2020 taxable income by the coefficient 1.18313797.
Following the circular from late last year in the context of the maximum deductible pension contributions for self-employed people in the 2nd pillar, we need to distinguish between the years as self-employed before 2021 and the years from 2021 onwards. The pension ceilings for calculating the 80% rule are as follows:
- Self-employed years before 2021: 25% of the income with a maximum of EUR 21,610.26 or in other words on a maximum income of EUR 86,441.04
- Self-employed years from 2021 + years as non self-employed before 2021 : 50% of the income with a maximum of EUR 86,441.04.
For wage earners, there’s only an indexation of the ceiling allows you to take into account 50% of the salary with a maximum of EUR 35,759.99 or in other words on a maximum income of EUR 71,519.98.
The minimum estimate of the statutory pension as a single person for both statutes is EUR 19,643.99.
Occupational accident benefits for wage earners are calculated in 2023 based on a properly indexed wage ceiling of EUR 53,087.42.
Disability benefits following private accident or illness are calculated at a wage ceiling of EUR 53,256.09.
The employer's contribution under an Individual Pension Plan for Salaried Employees (IPL) is deductible up to EUR 2,860 in 2023. Not to be confused with the Free Supplementary Pension for Employees (VAPW) where the premium is borne by the employee himself (see November 2018 Current). Every wage earner will find this amount at www.mypension.be
The system of maximum wage bonus or 'non-recurring result-related benefits' may tick up to an amount of EUR 3,948 gross (including solidarity contribution) in 2023.