Life and family

Pensions: get the most out of tax reforms before the end of 2018

At the end of the year, make sure your pension is tax-efficient! To help you benefit as much as possible from tax advantages, Stefaan De Backer, head of self-employed and micro-companies at ING, summarizes the essential information for you.

"Before the end of 2018, think about optimising your pension and at the same time benefit from a nice tax advantage.”

Tax reforms 2018

The summer agreement of the Michel government changed the fiscal environment. The impact of the measures should not be underestimated. The announced reduction in corporate income tax, which many entrepreneurs will obviously welcome, also means that the tax impact of a backservice will systematically decrease in the coming years. Now more than ever, it's time to dust off your insurance policies and make sure they still reflect your current situation. This is an excellent opportunity to optimize them.


As part of an Individual Pension Commitment (IPC) it is possible to pay pension contributions for years worked in the past. These are catch-up bonuses, also known as backservice. These premiums can be paid in one go or via the annual premiums and are, under certain conditions, fully deductible as business expenses.

Minimum wage increase – IPC - PSPS

We expect business leaders’ salaries to increase to 45,000 euros to maintain the SME qualification and the corresponding reduced tax rates. Such a salary increase in turn offers the possibility of further optimizing the constitution of pensions through a Supplementary Pension Plan for the Self-employed and/or an IPC. In the so-called 80% rule, the executive's salary is an important variable. If the salary increases, there will be more opportunities to build a pension. Here too, there will be opportunities for optimization.

The 80% rule

The 80% rule stipulates that the sum of the legal and the additional (yearly) pension may not exceed 80% of the last gross annual salary.

What can you do if you don’t have the necessary funds for such a backservice today?

Financing can be used for all or part of the backservice within the company. This is something to be discussed with your regular contact person at your bank.

What types of pension solution are available for self-employed people?

There are three options: the Supplementary Pension Plan for the self-employed (PSPS), the Pension Agreement for the Self-Employed (PASE) and the Individual Pension Commitment. Each of these products has its own characteristics and is relevant to a specific target group. It is often worthwhile to combine them in order to achieve an optimal tax position. For example, it may be beneficial for a self-employed person without a company to start up both a PSPS and a PASE. An independent manager often benefits from a combination of an Individual Pension Commitment with a PSPS.

Why does ING offer AXA products to its customers?

For several years now, ING has been offering its customers products from external partners that it considers to be the most appealing on the market. The partnership with AXA is a very good example of this. This arrangement gives our clients easy access to the excellent range of AXA insurance products, while benefiting from advice on pension and life insurance matters from their trusted contact person at ING. This is the person who is familiar with their personal situation and so can give them the best advice.

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