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If the group insurance regulation provides for the contributions
to be calculated on the basis of any foreign group salary,
employer's and employee's contributions will nevertheless
have to meet the so-called 80%-rule.
Group insurance contributions are tax deductible expenses
for the employer (employer's part) and entitle to a tax reduction
for the employee (employee's part) provided that the legal
(state) and extra-legal (private) pension benefits, paid at
the moment of retirement and converted into annuities, do
not exceed 80% of the last normal gross annual remuneration
calculated on the basis of a normal professional career.
However, according to the Administrative Circular Letter
of 13 July 1989, the Belgian tax authorities will, in case
of a split employment scheme, calculate the 80%-limit taking
into consideration only the Belgian remuneration.
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