The Belgian Federal Government has recently decided to put in place a series of fiscal measures with the aim to stimulate the Belgian economy.
Several incentives are related to the withholding taxes to be levied on the remuneration paid to employees, normally calculated according to the scales applicable to all employees. Provided certain conditions are met, the law rules that employers are exempt from paying the Belgian Treasury part of the professional withholding tax.
The partial exemption from withholding tax payment amounts to: 32.19% / 41.25% up to the first 100 hours for overtime hours (as from 1 January 2009) / 130 hours (as from 1 June 2010); 15.6% for shift work in teams or night work (as from 1 June 2009); 75% for employees performing activities in R&D (as from 1 January 2009).
The Belgian federal government has also agreed on a three months deferral of the professional withholding tax payment which applies to withholding taxes due for salaries received between March and August 2009.
Therefore no payments are due in July, August and September for employers who pay professional withholding tax on a monthly basis. However, payment over a two month period will be due in October, November and December. When the payments are made on a quarterly basis, the deadline for the second quarter payment is the same as for the third quarter payment, i.e. 15 October 2009.
This set of measures gives the employers more financial resources and cash flow which they can immediately use in whatever way they see fit.