Abolition of the ‘December advance payment’ of withholding tax

Author: Peggy Criel (Legal Expert)
Read time: 2min
Publication date: 07/12/2021 - 08:42
Latest update: 07/12/2021 - 08:44

From this year onwards, the 'December advance payment’ of the withholding tax will be abolished. This affects the so-called large employers and quarterly declarers. They no longer have to pay the withholding tax in advance in December to the FPS Finance.

Payment deadline withholding tax

The withholding tax must, in principle, be paid monthly within fifteen days after the end of the month in which the income was paid or granted.

When the withholding tax on the income of 2020 amounted to less than 41,700.00 EUR, the withholding tax is only payable within 15 days after the end of each quarter in which the income was paid or granted. Companies that fall under this rule are called quarterly declarers. 

Special provisions for the month of December

For December, there were special provisions for certain categories of companies until 2020. In derogation from the payment deadlines set out above, an earlier settlement of the withholding tax was requested.

Large employers

Large employers are employers who were due over 2,500,000.00 EUR of withholding tax in 2020. Previously, they had to pay the withholding tax on income paid or granted during the first 15 days of December to the FPS Finance by 24 December at the latest.

Quarterly declarers

The quarterly declarers were requested to pay the withholding tax due for the months of October and November by December 15.

Abolition of the ‘December advance payment’

The early payment of the withholding tax in December, known as the December advance payment, will be abolished from the income year 2021 for both large employers and quarterly declarers.

For the quarterly declarers, the deadline for the 4th quarter is now identical to that of the 3 other quarters, namely, at the latest the 15th of the month following the quarter (= 15 January).

This abolition is valid for an indefinite period.

Partena Professional customer?

Then you do not have to take action. Partena Professional will automatically apply the abolition of the 'December advance payment' in its invoicing and the periodic declarations to the FPS Finance.

Source: Act of 2 April 2021 on temporary support measures due to the COVID-19 pandemic, Belgian Official Gazette 13 April 2021.

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