R&D wage withholding tax exemption – Practical implications of the stringent implementation by tax authorities partly clarified. Your action required by August 1st, 2023
Executive summary: The new position of the Belgian tax authorities regarding the notification of R&D programs and projects to Belspo is requiring a more proactive and detailed reporting As a result, the existing Belspo procedure of annual updates is temporarily abandoned in favor of multi-year applications including relevant R&D information Applicants are advised to update
Carried interest structured via stock option plan – no taxation as professional income at exercise of the option as per Belgian Court
A Belgian Court annulled the tax assessment levied by the Belgian tax authorities regarding carried interest income structured via the means of an option plan. The Belgian tax authorities claimed the setup was fraudulent and simulated and therefore the income gained at exercise of the options should be taxable as employment income. On 27 February
R&D Wage withholding tax exemption – Strict interpretation of start dates confirmed in case law leading to altered interpretation of fiscal authorities
The tax audits with respect to the application of the partial withholding tax exemption for research and development with respect to income year 2021 are ongoing. With recent case law on the subject, two critical elements should be considered during these types of audit. Upfront notification with Belspo Recent case law of the Belgian Court
2023 proxy season – Belgian Companies brace for Shareholder Vote on Remuneration Policy
Belgian companies are gearing up for their annual general meetings and preparing for the vote on their remuneration policy and report, as mandated by the revised shareholder directive (SRD II). This vote, known as “say on pay,” allows shareholders to have a say in the company’s remuneration policy and report. Under the SRD II, companies
Pay transparency is coming! How to get it right?
On 30 March 2023, the European Parliament adopted the Pay Transparency Directive with the aim of eliminating the gender pay gap by providing workers with access to information necessary to assess whether they are being paid fairly compared to other workers in the same organization. The directive also introduces enforcement mechanisms enabling workers to claim
Tax Treaty concluded between Belgium and Luxembourg – The 24-day limit officially becomes the 34-day limit
In line with the OECD Model Convention, the treaty for the avoidance of double taxation concluded between Belgium and Luxembourg applies the ‘Work State’ principle. This means that a resident of a country working in another country is taxable in the country where the activity is performed. The Work State principle implies that a Belgian
Possible important amendments to the stock option legislation and the introduction of a specific tax regime for free shares
A government proposal regarding new legislation with respect to stock options and stock plans was announced in the Belgian press last week. Below you can find a short overview of the proposed changes with some initial high-level reflections. It is however important to note that no texts are currently available and that it is currently
Benefit in kind – Private use of a company car: updated formula for 2023
The Royal Decree implementing the new reference CO2 emission for calculating the taxable benefit in kind for the private use of a company car in the hands of company directors and employees has been published in the Official Gazette on 16 December 2022. For income year 2023, the following CO2 emission will be applied to
