FINANCE [COM] Full entry
FR

quotient conjugal

EN

dependent spouse allowance

2.19 Income splitting occurs according to the quotient familial or “family share” system. A family is attributed a total number of family shares as follows: two shares are attributed to a married couple (or pacte civil de solidarité), one share for a single person, half a share for the first two dependents, and one share for each additional dependent (or for each dependent of a single parent). Total family income is then divided by total family shares. Tax liability is calculated according to the progressive tax rate schedule for one share and then multiplied by the total number of family shares to determine the family’s total tax liability.

2.20 The tax benefit available for half shares beyond the first two full shares (or one full share for an individual) is limited to €2,159 per half share. The tax benefit from the share attributable to the first dependent of a single parent is limited to €7,472. The benefit from additional dependents is limited to €4,318 (2 x €2,159). These limits have been set on equity grounds, in recognition that the tax benefit of income splitting is greater for households with higher incomes.

2.21 Belgium allows partial income splitting similar to that proposed for New Zealand in the 1982 McCaw Report (discussed in more detail in chapter 3). Spouses are generally taxed separately, but under the marital quotient system (quotient conjugal), a notional amount of income can be transferred between spouses if one earns no more than 30 percent of the couple’s combined income. In this case the amount transferred is limited to 30 percent of total family income less the secondary earner’s actual income. This effectively provides 70/30 income splitting. The amount transferred is limited to a maximum of €8,570 (in 2006).