R&D wage withholding tax incentive audits – Mind the formalism and prepare yourself
As mentioned in our earlier newsflash the Belgian tax authorities have been issuing extensive and numerous tax audits with respect to the application of the wage withholding tax exemption for Research and Development over income year 2017. Please find hereafter some very important key takeaways. Mind the formalism and be prepared to substantiate the incentive claimed!
FAQs and administrative guidelines on the partial exemption from the wage withholding tax in the framework of R&D
A partial exemption from the wage withholding tax for qualified researchers carrying out research and development activities is provided. In practice, there was a discussion about the conditions to apply this exemption. The wave of tax audits regarding the partial exemption from the wage withholding tax, more in particular in the framework of R&D, demonstrated that
R&D tax benefits: only limited time to take action
Several measures have been taken to stimulate investments in R&D. One of these measures is the partial exemption of remittance of Belgian withholding taxes in the framework of research and development. As of July 2013, the exemption increased from 75% to 80%. Besides the increase in percentage, since 1 January 2014, a notification obligation has