Scientific research: reduction of tax burdens for bachelors

Companies employing researchers with specific master’s or doctor’s degrees or with a civil engineering degree in research or development projects or programmes are entitled to the exemption of the advance payment of withholding tax. As laid down in the Summer Agreement this exemption is extended to the researchers with a bachelor’s degree in a specific area of study as from 1 January 2018.

Extension of the exemption of advance payment of withholding tax

A partial exemption of advance payment of withholding tax of 80% of the withholding tax is granted to companies employing researchers with specific master’s or doctor’s degrees or with a civil engineering degree in research or development projects or programmes (R&D projects or programmes).

Since 1 January 2018 this exemption is extended to researchers employed in R&D projects and programmes and holding an academic or professional bachelor’s degree in a specific area of study.

The exemption of advance payment of withholding tax for these researchers amounts to:

• 40% of the calculated withholding tax for the remunerations granted or paid from 1 January 2018;
• 80% of the calculated withholding tax for the remunerations granted or paid from 1 January 2020;

Besides, the amount of the exemption for researchers with bachelor’s degrees is limited. The exemption is limited to 25% of the total amount of the exemption calculated for researchers with specific master’s or doctor’s degrees or with a civil engineering degree who are employed in R&D projects or programmes. For companies considered small companies (article 15, §§ 1 until 6, Company Code) for the tax year connected to the taxable period in which the remunerations are paid, the restriction percentage is raised to 50%.

Specific bachelor’s degrees

In order to be entitled to the exemption of the advance payment of withholding tax for bachelors, the researcher must possess:

• One of the next academic bachelor degrees (or equivalent degrees) in the areas of study or areas of study combinations:

• One of the next professional bachelor degrees (or equivalent degrees) in the areas of study or areas of study combinations:

Rely on the advice of our Legal Partners

In order to obtain the exemption of advance payment of withholding tax for scientific research, some conditions must be observed very strictly. To obtain the exemption you can therefore rely on the expertise of Partena Professional.

Call us at 02/5493020 or send an e-mail to legalpartners@partena.be.

Source: Act of 25 December 2017 reforming corporate tax (1), Belgian Official Gazette, 29 December 2017.

Author: Peggy Criel

24/01/2018