Context

As explained in our PTX Headline of 7 April 2003(*), the new Supplementary Pensions Act (Official Gazette 15 May 2003) considerably tightens the existing system for granting supplementary pension benefits. With regard to company pensions granted by means of individual pension promises, employees will be hit hardest, whilst self-employed company heads – those holding an office within a company – will benefit from the social aspects of the new law. The new Act also contains a number of changes to the Income Tax Code and the Tax Assimilated to Stamp Duty Code, including changes to the tax provisions on collective pension schemes.

News

On 14 November 2003(**), the Royal Decree in execution of the new Act on Supplementary Pensions was published in the Official Gazette, together with the new Royal Decree regarding life insurance activity and 5 other related Royal Decrees.

It is important to note that certain rules of the new Act came into force on 14 November 2003 but that most of the changes to the tax legislation (e.g. new tax restrictions for individual pension commitments) will come into force on 1 January 2004.

(*)http://news.hrservices.be?200304071908
(**)http://news.hrservices.be?lk200311181