Tax exemption for social liabilities: nominative lists

An employer who wants to benefit from the new tax exemption for social liabilities must submit an annual nominative list by electronic means. No information about this electronic application is available yet.

Context

Due to the introduction of the single employment status, the dismissal cost for an employee has increased in some cases compared to the dismissal cost in the former scheme. In order to compensate for this higher cost, a tax exemption for social liabilities was introduced.

The amount to be exempted from profits or gains per employee amounts to:

• 3 weeks of remuneration, from the 6th to the 20th started year of service after 1 January 2014;
• 1 week of remuneration from the 21st year of service started after 1 January 2014.

The remuneration on which the exemption is calculated shall, if necessary, be limited.

More information about this measure can be found in our Infoflash of 25 March 2019.

Nominative list

In order to benefit from the exemption, the employer must submit a nominative list of the employees employed by electronic means each year. This will be done via Belcotax-on-web. For the time being we have no more information on the electronic application. As a result, it is not yet possible to submit lists.

Besides, the information on this list has been extended. For each employee, the list must contain the following information:

• the full identity and the national number (or the bis-identification number issued by the Crossroads Bank of Social Security);
• the employment start date;
• the length of service acquired under the single employment status;
• the amount of the exemption;
• where appropriate, the end date of the employment contract;
• where appropriate, when an employee concerned leaves the enterprise, the amount of the total amount already exempted for that employee included in the profits and gains of the taxable period in which the employment ends;
• the gross taxable remuneration paid or attributed to the employee, limited to the monthly limit.

We are waiting for further instructions from the FPS Finance. As soon as there are new developments, we will inform you.

Sources: Royal Decree of 13 June 2019 amending article 46quater of the RD implementing the 'Code des impôts sur les revenus 1992' with regard to the application modalities concerning social liabilities pursuant to the single employment statute, BOJ 4 July 2019; Ministerial Decree of 24 June 2019 determining the modalities of electronic communication referred to in article 46quater of the Royal Decree implementing the 'Code des impôts sur les revenus 1992', BOJ 4 July 2019.