PLF 2023: what may change regarding the taxation of supplementary pension insurance

If PLF 2023 were to be adopted as it is, the taxation attached to supplementary pension contracts would change. A flat tax of 30% could apply to redemptions of contributions within a period of eight years, rather than the scale of the current IGR. An impact on drawings and redemptions could be observed.

The PLF 2023 proposed various changes to the tax scales relating to corporation tax or OPCIs. He also returned to certain insurance company products, particularly pension products.

The PLF 2023 proposal consists of using a fixed taxation for redemption of contributions within 8 years and/or before turning 50. for supplementary pension agreements.

The contact explains a source from the sector to us: “The major change proposed in PLF 2023 is the fixed taxation of redemptions and partial redemptions of an individual or group supplementary pension agreement. The proposed flat rate is 30%, non-dischargeable to the taxpayer.

The customer in question who wishes to withdraw his deposited money within a period of 8 years must therefore pay 30% of the redeemed amount. This means that at the end of the year, the taxpayer must declare his entire income, and depending on this, either a part will be returned to him, or a supplement will be requested from him by the tax authorities.

“By the for people who stay until the end of the contract, there will be no impact. In short, if the person leaves the contract at the end of the term, after the age of 50 and after 8 years, he retains the applicable benefits, namely a reduction of 40% divided by 4 and passed by the IGR scale of after. This gives a privileged tax rate”, clarifies our source.

The existing system is not a flat rate, but the general income tax scale (IGR scale), which is progressive and depends on the person’s income level.

According to our source, “this may have an impact on subscriptions or lead to significant withdrawals before a potential entry into force”.

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