Update on wage withholding tax exemptions
Update on “bis-variant” for night and shift labour” In the course of 2024, the new “bis-variant” for shift work was introduced. This temporary variant allows companies that do not meet the condition of equal size to still (partially) benefit from the exemption for shift work. The new Royal Decree clarifies that employers wishing to use
Exciting Updates in R&D Tax Law: New BELSPO Directives
BELSPO has recently worked with Belgian tax authorities to clarify the Withholding Tax (WHT) exemption process for R&D, with the goal of reaching a more uniform point of view regarding the content of the application procedure and advice. This harmonization, initiated in spring 2024, is a significant step forward, addressing the need for clearer guidelines
Important Update regarding Reimbursement of Home-Charging Costs – Circular Letter 2024/C/77 of December 5, 2024
In 2021, the ‘green revolution’ within the Belgian mobility landscape was introduced. The legislator drastically intervened in the social and tax treatment of combustion engine vehicles to ensure that the Belgian vehicle fleet would electrify at a rapid pace. Based on information provided by Statbel the number of electric vehicles has increased with almost 255%
Partial wage withholding tax exemption for shift work: Royal Decree introduced to solve opaque application by temporary employment agencies
To ensure a level-playing field, companies recognized for temporary employment were already equated with companies where shift work is carried out with respect to the withholding tax exemption for night and shift work. To apply the exemption, in addition to the basic conditions, they require prior consent from the client-user that employs the temporary workers.
New withholding tax exemption for variable shifts adopted in Parliament
On 3 May 2024, the Belgian Parliament adopted the law concerning the new exemption of withholding tax for shift work with variable shifts. The law introduces the “variant bis”, aiming to ensure clarity and legal security, mitigating recent judicial decisions that restricted the definition of qualifying shift. For more information, we refer to our previous
Exemption of withholding tax for night and shift work, a new measure for variable shifts
On 22 March 2024 (published on 27 March 2024), the Federal government introduced amendments to a draft bill which outline a new transitional measure regarding the withholding tax exemption for night and shift work. This transitional measure, referred to as “variant bis” is in response to the uncertainty that arose after the Constitutional Court opened
Wage withholding tax exemption – Constitutional court has introduced a strict interpretation of the application requirements for the wage withholding tax exemption for shift work
Executive Summary In a request for preliminary ruling, the Belgian Constitutional Court was asked to rule on the discriminatory character (or not) of one of the conditions to apply the withholding tax exemption for night and shift work. Said condition requires that the shifts perform the same work in terms of content and magnitude of
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
