Once-only policy for late eco-cheques

In our newsflash of 3 April 2009, we announced the introduction of the eco-cheque as a new remuneration element, which under certain conditions, is exempt from personal income tax and social security contributions.

One of these conditions mandates that the total value of the eco-cheques granted should not exceed 125 EUR in 2009 and 250 EUR in 2010.

Because of the difficulties encountered during negotiations on the actual introduction of these vouchers in different industries and/or companies, eco-cheques relating to 2009 were, in practice, often only paid out in 2010 along with the eco-cheques relating to 2010. As a result, the maximum amount for 2010 is exceeded.

According to the National Social Security Office (NSSO), eco-cheques relating to 2009 but paid out in 2010 should not be taken into account for calculating the 2010 maximum amount, on condition that the CBA introducing the 2009 eco-cheques was actually concluded in 2009.

The Treasury, on the other hand, up until recently, considered the date the eco-cheques were paid: if the total value of the eco-cheques paid out in 2010 exceeded 250 EUR, the eco-cheques became fully taxable.

However, in the Belgian Official Journal of 8 October 2010, the tax administration announced the application of a “once-only policy” to 2009 eco-cheques paid out in 2010 which would not be taxable; provided of course that the maximum amounts (375 EUR in total) are not exceeded. See also the Tax Alert published by Deloitte Belgium.