Indices and thresholds
Notional annuity
Notional annuities arise when a lump sum is not taxed all at once, but the tax burden for the beneficiary is spread over 10 or 13 years.
Spread taxation on notional annuities instead of a one-time tax on lump sums occurs fairly often.
This is, for example, the case with a payout during life under a VAPZ (the free supplementary pension for the self-employed)") or RIZIV (the national health and disability insurance institute)") contract (and then only from retirement age), as well as on the first part of an IPT (an individual pension commitment funded by your company) if an advance was taken out on that contract.
Also in the case of a death benefit payout from a debt balance insurance policy, the beneficiary is taxed in the form of a notional annuity.
In most cases it is the insurer who will prepare the corresponding tax statement for 10 years or 13 years.
Alongside, the notional annuities are listed according to the age of the beneficiary.
| Age of the beneficiary at payout | Notional annuity | Duration of the declaration |
|---|---|---|
| 40 years and younger | 1 % | 13 years |
| 41 - 45 years | 1,5 % | 13 years |
| 46 - 50 years | 2 % | 13 years |
| 51 - 55 years | 2,5 % | 13 years |
| 56 - 58 years | 3 % | 13 years |
| 59 - 60 years | 3,5 % | 13 years |
| 61 - 62 years | 4 % | 13 years |
| 63 - 64 years | 4,5 % | 13 years |
| 65 years and older | 5 % | 10 years |