2023, year of upheaval for the R&D professional withholding tax exemption
Reminder of the measure
Exemption from withholding tax for knowledge workers can be a source of significant savings. Indeed, up to 80% of the withholding tax eligible staff can be picked up by the company if the numerous conditions are met. A real lever of major interest in a context of unprecedented wage indexation.
BELSPO notification — An obligation that is becoming more complex and a strengthening of controls
Like any tax incentive, the R&D withholding tax exemption is subject to checks by the SPF Finances in order to verify the relevance and legitimacy of its application. In May 2023, the latter alerted companies to the severity of its controls and the poor application of the measure.
Indeed, corrections to the exemption applied were requested in 55% of cases, sometimes involving reimbursements with disastrous effects for businesses. It is therefore essential to ensure the correct application of fiscal leverage and compliance with the conditions to be met.
Among the main conditions to be respected was the notification of research projects on the BELSPO platform. The notification of projects, programmes and relevant personnel should be kept up to date.
However, following a ruling by the Court of Cassation on 6 January and a circular from the SPF on 27 April this year, the situation is completely changing and adding critical complexity so that companies can properly and calmly benefit from this incentive, which is nevertheless essential to their development. In fact, from 1Er August 2023, projects for which an exemption is requested must be notified BEFORE the start of related research activities. The impossibility of notifying ongoing projects and the need to anticipate the research and development work that will be carried out therefore significantly burden and penalize companies for which R&D activities are synonymous with agility and the maximum deployment of resources to face the dynamics of market needs and emerging technologies.
An incentive allowing significant savings
In a period as uncertain as the one we are currently going through, it is therefore extremely wise to be accompanied by professionals who exchange regularly with BESLPO and the tax authorities in order to avoid any correction in the application of the exemption!
Contact us and our experts will take care of making your files indisputable with the tax authorities.