The contributions paid towards your retirement insurance under your Madelin policy are deductible from your taxable profits, up to a maximum amount.
For 2017, your Madelin pension contributions are therefore deductible within the limit of the higher of the following 2 amounts: 10% of the taxable profit up to a maximum of €313,824 plus, where applicable, an additional 15% on the portion of the profit between €39,228 and €313,824; €3,923.
For example, if you made a taxable profit of €314,000 in 2017, the deduction ceiling for your Madelin pension contributions would be €72,571 (i.e. 10% of €313,824 + 15% of €274,596).
Note that any payments made to PERCO must be deducted from the Madelin pension deduction ceiling.
The annuity paid at the end of your Madelin pension policy is taxed using the income tax scale category of pensions, retirements and annuities without charge after deduction of a 10% allowance (capped).