A Belgian employer may grant a benefit to his employees in the form of a non-recurrent performance-related bonus. Up to a certain amount, such bonuses are exempt from income tax and, apart from a 13.07% employee solidarity contribution, only a special social security contribution of 33% is payable by the employer. The maximum bonus that can be paid under such a scheme is indexed each year.
For bonus plans which lead to payments in 2014, the exempted maximum amount has been raised to EUR 3,131 (social security limit) and EUR 2,722 (tax limit).
Hence, the maximum amount which is exempt from tax in 2014 is EUR 2,722 (being EUR 3,131 minus the personal social security contributions of 13.07%).
Should the employee receive more than EUR 3,131 in 2014, the amount of the bonus which exceeds the maximum will be subject to the ordinary social security contributions.
