The Restricted Council of Ministers (Kern) also confirmed the tax reform that the federal government will operate during the legislature. All measures represent a package of 4.4 billion euros at full speed, by 2029, announced the Minister of Finance Jan Jambon.
The tax exempt from tax, the amount under which no individual’s tax (PPI) is due, will drop from 10,910 euros to 15,300 euros in 2029, with a first step in 2026.
The Special Social Security subscription (CSSS) will be reduced in favor of isolated people. An isolated will benefit up to 365 euros additional net per year via this measure, according to the minister.
The employment bonus will be considerably increased for the lowest income. In 2029, the gross will be equivalent to the net for the minimum wage.
The government has also planned to increase the tax benefit for dependent children. For the first child, he will go from 1,980 euros to 2,650 euros in 2029. The intention is also to ultimately eliminate the progressiveness of this advantage.
Pensioners who continue to work will pay only 33 % maximum taxes, instead of progressive rates of up to 50 %.
The self -employed without a company will benefit from additional support with a deduction from an entrepreneur brought to 900 euros in 2029 (instead of 650 euros).
The tax increase in the event of insufficient early payments will be deleted. The copyright system will be extended to the IT sector (IT).
Finally, a “Vinted exemption“Will be introduced for occasional online sales, such as the resale of children’s clothing. This will go up to 2,000 euros per year and there will be no more tax risk at 33 %.
To curb the Constitution in a company, the minimum remuneration of managers will drop from 45,000 to 50,000 euros. In addition, if more than 20% of the remuneration consists of advantages of any lump sum kind, the government will apply from 2026 a separate taxation of 10% on the excess, that is to say the share which exceeds 20%.
The marital quotient will be gradually removed. Finally, the reduction in unemployment benefits will be removed in the long term. In addition, integration income (RIS) will become taxable, in order to take into account all the income received by the taxpayer.
