Pension
EIP
Engagement Individuel de Pension (individual pension commitment, IPC, IPT in Dutch)
By the Finances Indépendants editorial teamUpdated on 4 min readAlso known as: Individual pension commitment, IPC, IPT
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Contents
What is an IPC?
The IPC, or individual pension commitment (Engagement Individuel de Pension, EIP), is a pension insurance contract taken out by a company for a named director. The company pays the premium, the director is the beneficiary, and the capital goes to them at pension age.
The advantage is structural: the premium is a business expense of the company, deducted from taxable profit before corporate income tax. The director therefore builds up retirement savings with euros that have been through neither personal income tax nor social security contributions, whereas remuneration or a dividend would have borne them.
You must be a company director and receive regular monthly remuneration. An unpaid directorship cannot support an IPC, as there is no reference remuneration on which to base the calculation.
What is the ceiling for an IPC?
There is no ceiling expressed in euros. The deductible amount follows from the 80% rule: supplementary and statutory pension combined may not exceed 80% of the last normal gross annual remuneration, projected over a career of 40 years.
In practice, you first estimate the director's statutory pension, subtract it from 80% of their last normal gross remuneration, and the balance gives the supplementary pension that can still be built up. This annual balance is then capitalised to obtain the allowable premium.
Two levers therefore govern the ceiling: the director's remuneration and the remaining length of their career. Low remuneration automatically caps the IPC, which is the first thing to check before considering the scheme.
Back-service: catching up on past years
Back-service makes it possible to fund retroactively the years of career already worked but not covered by a pension contract. That is why IPC premiums can reach several tens of thousands of euros in the first year.
The career taken into account is capped at 40 years. Years before the company was set up can be included in the calculation under certain conditions, which the insurer and the accountant assess case by case.
The effect on corporate income tax
The premium reduces the company's taxable profit, and therefore the corporate income tax due. The standard rate is 25% and the reduced SME rate 20% on the first €100,000 of profit.
Watch out for a side effect: the reduced SME rate requires sufficient director's remuneration. An IPC premium so generous that it pushed the company outside the conditions for the reduced rate would cost more than it brings in. The trade-off is made with the accountant, on the figures for the financial year.
What happens on exit
The capital is taxed at a flat rate of 10%, plus municipal surcharges. This flat rate is specific to the IPC: it does not go through the notional annuity, which is the PLCI/VAPZ mechanism. The capital is taxed at 10% (plus municipal surcharges) if it is paid out at the statutory pension age and the director has actually remained active until then. Paid out earlier (from age 60), the capital is taxed at 16.5% or 18%.
The condition of remaining active matters: receiving the capital at the statutory age while still working gives access to the most favourable rate. Early payout falls under a less advantageous regime, to be checked before any decision.
Not to be confused with
The terms close to EIP and what sets them apart.
- EIP and PLCI/VAPZ
- The PLCI/VAPZ is funded by the self-employed person from their own income and is outside the 80% rule. The IPC is funded by the company and is subject to it. The two can be combined, and the PLCI/VAPZ is filled first.
- EIP and POZ/CPTI
- The POZ/CPTI plays the same role as the IPC but for a self-employed person without a company. It gives a personal income tax reduction, whereas the IPC gives a deductible expense for corporate income tax.
- EIP and Group insurance
- Group insurance covers a category of staff under a collective scheme rule. The IPC targets a named director through an individual commitment.
Further reading
EIP: frequently asked questions
There is no fixed amount. The ceiling results from the 80% rule: statutory pension plus supplementary pension may not exceed 80% of the director's last normal gross annual remuneration, over a career capped at 40 years. The calculation is done by the insurer or the actuary.
Yes, in practice. The ceiling is calculated on the last normal, regular, monthly gross remuneration: without remuneration, there is no calculation base and therefore no deductible premium. In addition, the reduced corporate income tax rate also requires a minimum director's remuneration.
Yes, and it is the recommended combination for a company director. The PLCI/VAPZ is filled first because it is outside the 80% rule; the IPC then absorbs the balance available under that rule.
It is the option to fund retroactively the years of career already completed and not covered by a pension contract. It allows a first premium well above the regular annual premium, within the limit of a 40-year career.
At a flat rate of 10%, plus municipal surcharges, if it is paid out at the statutory pension age and activity has continued until then. Received earlier, from age 60, the capital is taxed at 16.5% or 18%. On top of that come the NIHDI (INAMI/RIZIV) levy and the solidarity levy.
The contract is in the director's name, and they remain the beneficiary of the rights already built up. Depending on the case, the contract can be taken over individually, transferred or made paid-up. This is something to examine with the insurer before any transaction involving the company.
Official source
- FPS Finance, Income Tax Code (CIR 92). View (new tab)(Official source, accessed on 2026-09-19)