Pension increases will no longer lead to a net decrease

Thursday, 18 May 2017 18:52
Pension increases will no longer lead to a net decrease © Belga
Taxpayers who receive only a pension, replacement income or statutory sickness or disability benefit will no longer see their net income decline in the event of an increase in gross income, as could happen in various cases.
A technical correction was approved on Thursday by the council of ministers in order to remedy this problem.

Working groups had been working for months to try to correct this anomaly, while another clause voted upon in the House had been passed on the side of the objective. Thus, the calculation of the special reduction for pensions and replacement income, a tax measure, had been revised so that an increase in the pension or statutory sickness and invalidity allowance does not decrease in net income through the application of additional communal amounts. The amendment to the 2016 tax year did not have the desired effect.

The Council of Ministers approved a new technical correction on Thursday, this time on the 2018 financial year. This was incorporated into the draft bill "Miscellaneous Tax Provisions".

Oscar Schneider
The Brussels Times
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