Professional withholding tax exemption for shift and night work
Exemption from withholding tax is a significant tax advantage for companies where work is carried out in teams or at night. Changes are regularly made to the criteria to be able to benefit from them. In 2024, the novelty concerns the formalization of the granting of the bonus.
New criterion for awarding the award of the bonus
Starting from 1Er April 2024, the bonus awarded for shift work and night work must be expressly mentioned in one of the following documents:
- work regulations; or
- the Collective Labour Agreement (CCT); or
- The employment contract
It is therefore strongly recommended to comply with this new requirement in time at the risk of being refused the exemptions applied (with tax adjustment to be suffered).
Recall the criteria that already apply to benefit from the exemption from the payment of withholding tax.
Conditions for team work:
- The work must be carried out in at least two teams comprising at least two workers;
- The work carried out must be the same, both in terms of purpose and scope;
- Teams must succeed one another without interruption or duplication exceeding a quarter of daily tasks;
- The bonus awarded must increase by at least 2% the remuneration awarded to the worker for one hour worked in a shift or at night;
- Workers must be employed at least one third of their time in teams during the month for which the benefit is requested;
Conditions for night work:
- The services must be performed between 8 p.m. and 6 a.m., excluding workers who perform services only between 6 a.m. and 24 hours and workers who usually start working from 5 a.m.;
- Workers must be employed at night for at least one third of their time in a shift during the month for which the benefit is requested;
- The bonus awarded for night work must increase by at least 12% the remuneration awarded to the worker for one hour worked at night.
If you think you are eligible for the exemption from the payment of withholding tax, or if you wish to be accompanied in the procedures for calculating, declaring or verifying compliance with legislation, do not hesitate to contact us.
Our experts are available to guide you through the process, maximize your tax benefits and limit the risks of a tax recovery.