Professional wage withholding tax exemption for team and night work
A tax incentive for employers, allowing them to retain a significant portion of the professional withholding tax deducted from the wages of shift and night workers, with no impact on the employees themselves
The exemption from professional wage withholding tax applies to several forms of work organization: team work, night work, continuous shift work, and real estate work in teams on construction sites. In each case, the employer can retain a portion of the professional wage withholding tax normally paid to the Tax Administration.
ABV Development assists companies with verifying their eligibility, implementing the measure, ensuring its proper application, and managing administrative procedures.
22.8%Exemption cap applicable to the payroll for team or night work
25%Exemption cap applicable to the payroll for continuous shift work
18%Exemption cap applicable to the wage base for construction site team work
3 yearsMaximum recovery period for overpaid amounts via administrative claim
General conditions for applying the measure
- Affected employees must work at least one-third of their time under the specified arrangement (team work, night work, or construction site work).
- The employer must also provide a compliant bonus: at least 2% for team work, 12% for night work, or adhere to a specific minimum wage for construction work.
Additional, more specific conditions apply depending on the type of exemption concerned.
A preliminary analysis helps ensure the measure's application and limit risks in the event of a tax audit.
Work arrangements eligible for exemption
Your questions about the exemption
of professional withholding tax
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