Profit Premium Plan
How does the new Profit Premium Plan fit into your variable pay Agenda? Which bonus plan fits best your company?
The new Profit Premium Plan is easier, more attractive and more tax efficient
Updated January 2019
The Program Law published in the State Journal of 25 December 2017 (Dutch | French) introduces an almost entirely new tax regime for Profit Premium Plans (Winstpremie | Prime bénéficiaire) replacing the existing regulation for Profit Participation Plans. The objective of the new regime is to improve employee purchasing power by introducing a simplified and even more attractive scheme.
Stijn Demeestere, Head Partner of the Employment, Pensions and Benefits practice, in collaboration with Sofie Van Breedam, Global Employer Services Partner at Deloitte Tax Consultants, looked into the new Profit Premium Plan.
Although this is certainly a very attractive scheme, each organisation will need to assess and define whether and how this new plan fits within its variable pay agenda.
Download the report compiled in collaboration with Deloitte Tax Consultants: