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!
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
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
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
On 23 January 2015, the European Commission finalised its investigation of the tax incentive for innovative companies which aimed at encouraging R&D activities of new small companies in Belgium under the EU state aid rules. According to the Commission, this tax system complies with the EU state aid rules and can thus be maintained. Note
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