The Madelin law allows the tax deduction, under certain conditions, of the contributions paid by the self-employed worker to constitute a supplementary pension or supplementary benefit guarantees under Madelin contracts.
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Who is concerned by the Madelin contracts?
Are concerned persons subject to income tax in the category of industrial and commercial profits (BIC) or non-commercial profit (NBC): Members of the liberal professions: doctors, medical auxiliaries, lawyers, architects, notaries, bailiffs, etc. Individual farmers: traders, craftsmen; Non-employee managers of a partnership: EURL (sole proprietorship with limited liability), partnerships, limited partnership, partnership or de facto; The non-salaried majority manager of a SARL or a SELARL (limited liability company); The manager of a partnership limited by shares; EURL’s sole shareholder did not opt for its corporate tax liability. The collaborating spouse not paid by the TNS.
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What is the purpose of Madelin contracts?
The Madelin contracts allow non-salaried workers (TNS) to set up an additional pension and benefit from pension guarantees (sickness, maternity, incapacity for work, disability, death, dependency) and loss of employment. Contributions paid under these guarantees can be deducted from taxable income up to a tax ceiling.
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Contracts Madelin: what do insurers offer?
Insurers offer membership in a group insurance plan for retirement, pension and loss of employment suffered.
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What are the conditions for taking out pension and retirement benefits?
The self-employed worker may only purchase pension and retirement benefits if he is up to date with his compulsory contributions and if he can justify them. If it were not up to date, it would be liable to a fine and its membership would be canceled.
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How are the Madelin contract dues fixed?
Contributions must be regular in amount and frequency. With regard to pension and provident insurance, contributions must be paid at least once a year.
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Is there a minimum amount of contribution?
For pension insurance, a minimum contribution amount is set for the subscription. Each year, this basic amount varies proportionally to the Social Security ceiling and the member may, if he wishes, change his contribution between the minimum basic amount fixed for the subscription and a maximum of 15 times this amount.
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Can we contribute in the past years?
Members may make additional contributions to constitute an optional supplementary pension for the years between the date of their affiliation to the mandatory old-age insurance scheme and the date of their adhesion to the group contract. The amount of the additional contribution paid during a year is equal to the total amount of the periodic contribution paid for the same year.
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What are the possibilities of early release of Madelin contracts?
The law provides for early release in several situations: A second or third category disability of the insured person, that is to say a disability of at least 80% which prevents him from exercising a professional activity; A cessation of self-employed activity because of judicial liquidation (upon presentation of the Commercial Court’s judgment); The death of the spouse or the pacs partner; Over-indebtedness; A situation that justifies it according to the president of the commercial court in which is instituted a conciliation procedure; The expiry of the rights of the insured to the unemployment benefits provided by the Labor Code in the event of dismissal; The absence of a work contract or a corporate office for at least two years from the non-renewal of the term of office or dismissal for the insured persons who have held the functions of director, member of the executive board or board member supervisors, and did not pay their pensions in a compulsory old-age insurance scheme.