Belgium fine-tunes the tax framework for ELTIFs
On 15 July 2022, the tax framework for ELTIFs has been completed with the necessary exemptions of Belgian withholding tax (WHT). As a recall, the law of 21 January 2022 on various tax provisions provides a tax framework for European long-term investment funds according to three principles: Corporate tax neutrality of the investment company Avoidance
Brace Yourselves – R&D wage withholding tax incentive audits are coming!
The Belgian tax authorities are once again starting to conduct tax audits on the application of wage withholding tax exemptions for research and development. The most recent round of audits relate to income year 2020. In our earlier newsflash we put together some important key takeaways from the tax audits of income year 2019. The
Time to verify your night – and shift labour: check your shift premium and the calculation of the ⅓ norm!
Strict case law regarding the shift premium and more strict FAQ regarding ⅓ norm urges for action Night – and shift labour incentive Companies with employees performing shift or night work can receive a partial exemption from the payment of wage withholding taxes. The ‘discount’ is quite substantial: as an employer you can save up
Administrative circular on spin-off transactions
On April 20th, 2020, the Belgian Tax Administration issued the circular 2020/C/55 further detailing the tax treatment of spin-off transactions according to article 264, first paragraph, 4° of the BITC 92. Context As a reminder, the so-called spin-off transactions are not demerger transactions nor transactions assimilated to a demerger, as defined by article 2, §1,
Finprof announced postponement for submitting the withholding tax return for 2018 until 27 September 2019
Companies and payroll offices can still make corrections on the withholding tax declarations for 2018 up to 27 September 2019. After this final due date, a formal motivated tax claim will be required to amend the withholding tax returns. Also withholding tax exemptions, such as the R&D exemption, exemption for night and shift labor and
Tax audits – Partial wage withholding tax exemption for R&D
The Belgian tax authorities are again issuing tax audits with respect to the application of the wage withholding tax exemption for Research and Development over income year 2017. Extensive list of questions A few years ago, a similar wave of audits took place. Compared to the previous tax audits, we notice that the list of
CJEU rules on subject-to-tax requirement of Parent-Subsidiary Directive
On 8 March 2017, the Court of Justice of the European Union (“CJEU”) rendered its Judgment in Wereldhave Belgium and Others concerning the interpretation of the subject-to-tax requirement of the Parent-Subsidiary Directive (“PSD”) (C-448/15). The CJEU’s interpretation of the PSD’s subject-to-tax requirement is more severe than a mere formal subjective tax liability. However, the precise
Additional wave of tax audits to be expected with respect to withholding tax exemptions
The amount of wage withholding taxes to be withheld by the employer is based on the withholding income tax scales published in a Royal Decree. The Belgian Income Tax Code provides for several exemptions (overtime, R&D, night and shift work, etc.) with respect to the remittance of Belgian withholding taxes. During 2014, the Belgian tax authorities
