Belgium Clarifies Rules On Pension Solidarity Contribution

By Editorial 12 December, 2013

During a recent session, the Belgian Council of Ministers approved a bill clarifying legislation pertaining to the collection of the country's solidarity contribution levied on pensions.

The bill makes clear that the solidarity contribution is not withheld on Belgian pensions paid out to pensioners covered by the social security regime of another European Union (EU) or European Economic Area (EEA) member state, or by the Swiss social security system.

This precision is designed to ensure that the collection of Belgium's solidarity contribution is carried out fully in accordance with European rules on social security coordination.

The bill, which modifies Article 68 paragraph 3 of the law of March 30, 1994, has now been submitted to the State Council for examination.

European Union rules on social security coordination are designed to protect an individual's social security rights when moving within Europe (EU 28 plus Iceland, Liechtenstein, Norway, and Switzerland). One of the main principles of the legislation is that individuals are covered by the legislation of one country at a time, so contributions are only due in one country.

Furthermore, and on the recommendation of Finance Minister Koen Geens, the Belgian Council of Ministers approved the country's tax simplification bill during a second reading. According to the Government, the draft legislation had been modified to take into consideration the advice of the State Council.

Ahead of a more ambitious reform of taxation in Belgium, the bill provides for a number of fiscal measures aimed at simplifying existing legislation, harmonizing regulations, and correcting certain anomalies in existing procedures.

Tags: Individuals | Finance | Tax | Pensions | Belgium | Iceland | Law | Liechtenstein | Norway | Legislation | Social Security | Switzerland | Regulation | European Union (EU) | Expats | Pensions | Europe | Pensions |


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