1. Final tax on a VAPZ

Jan is self-employed, 15 years ago he took out a contract for a free supplementary pension for the self-employed (VAPZ) with an insurance company. He never deducted the contract premium from his personal income tax.

Jan will retire soon. He applies to the tax authorities for a certificate stating that he has never deducted the premiums for tax purposes. The insurance company will not apply final tax to its contract after receiving the certificate. Is Jan's reasoning correct?

Answer:

No. A final valuation always applies to second pillar contracts (VAPZ, IPT, group insurance, POZ). Whether or not the premium was deducted for tax purposes is not important. The final valuation of a VAPZ contract is based on the notional interest rate.

Do not confuse this with contracts for long-term savings and pension savings. No final valuation is applied if the policyholder can provide a certificate from the tax authorities that no premium has been deducted for tax purposes.

Ref.: Article 34 §1, 2°bis WIB 92 (taxability of VAPZ capital) and Article 169 §1, 2° a) WIB 92.