The Minister of Pensions proposes to modify the taxation of the capital paid to the beneficiary of a second pillar.
Currently, when the supplementary pension is paid in the form of a lump sum, there is a 10% tax if the beneficiary withdraws the amount at age 65 and has remained active until that age. The tax is the same, it’s 10% for everyone, whether you get a small amount or a bigger one.
There is therefore a difference with the legal pension, the tax rate of which increases gradually according to the amount of income.
The Minister proposes to maintain the rate of 10% for 96 to 97% of second pillar affiliates. On the other hand, the rate would be higher for the 3 or 4% of beneficiaries of a second pillar who receive the highest amounts, for example several hundred thousand euros. We can think, in particular, of business executives.
That said, other avenues of reform are possible and could also end up on the government’s table. One could, for example, cap the amounts constituted in the second pillar or make the tax incentive less advantageous.