Context

As you may know, self-employed individuals (including self-employed company directors) pay their social security contributions to the social insurance fund to which they are affiliated on a quarterly basis. Except for the first three years of activity, the quarterly contributions due for a given year are calculated based on the earned income earned in the third calendar year preceding the year in question (“income of reference”). The method of determining the income of reference was complex as it required a grossing-up and re-evaluation of the taxable earned income earned in the third previous year.

News

As from calendar year 2003, the social security contributions for which self-employed individuals will be liable at the end of each quarter will be computed by applying the following scale on the net taxable earned income earned in 2000:

* 19,65% on the first bracket of EUR 43.587,20 of the net taxable earned income

* 14,16 % on the bracket between EUR 43.587,20 and EUR 64.238,84 of the net taxable earned income

The new maximum quarterly contribution amounts to EUR 2.872,29 (administration costs not included!)

The 2000 taxable earned income will not be grossed-up (the re-evaluation method will however still be applicable), which will improve the transparency of the system but will not have a major material impact on the amount of quarterly contributions due in 2003 had the previous applicable grossing-up valuation method been kept.

Source: Program Law of 24 December 2002, art 2 ( http://news.hrconsulting.be?lk200302043 )

More information available at the INASTI – RSVZ web site
French: http://news.hrconsulting.be?lk200302041
Dutch: http://news.hrconsulting.be?lk200302042