New tax support measure for occasional work in the fruit and vegetable growing sector

Employers active in the fruit or vegetable growing sector can benefit from a new tax support measure. It has the form of an exemption from advance payment of withholding tax for occasional workers employed since 1 July 2023.

Context

Since 1 July 2023, the minimum wage for occasional workers in the horticulture sector has been increased. To compensate for the resulting additional costs, a new exemption from advance payment of withholding tax was introduced.

Target group

The measure applies to employers who:

• come under the joint committee for horticulture and are primarily engaged in fruit or vegetable growing;
• grant remuneration for services of occasional workers in fruit or vegetable growing during the period from 1 July 2023 to 31 December 2023.

Fruit growing includes the cultivation of hard fruits, soft fruits and stone fruits including grape growing.

Vegetable growing refers to the cultivation of vegetables in open air or under glass, excluding the cultivation of mushrooms and truffles.

Exemption from advance payment of withholding tax

A portion of the withholding tax you deduct from the remunerations of occasional workers should not be passed on to the tax authorities.

This portion is equal to 1.23 euros per hour multiplied by all hours of occasional work performed in the period from 1 July 2023 to 31 December 2023, for which remunerations are paid for the first time.

Suppose you pay the remuneration for hours of occasional work performed in October 2023 in the same month. In November 2023, you pay out an additional amount for those same hours. The exemption is then applied to the withholding tax due for the month of October 2023, the month in which remuneration was first paid for the hours of occasional work in question.

Both actual hours worked and equivalent hours for which normal remunerations are paid, such as a public holiday, are taken into account in determining the amount of the exemption.

The exemption is applied to the withholding tax due on the remunerations of all occasional workers for the month in question. Please note that the exemption does not apply to any additional withholding tax (tax voluntariat).

Moreover, the exemption is calculated only after the application of other exemptions from advance payment of withholding tax (overtime, shift work, night work, shift work in construction works, support zones, natural disaster, start-up companies, training).

From a temporary to a permanent measure

Based on a Draft Program Act, the temporary measure will be converted to a measure of indefinite duration after 1 January 2024.

We will keep you updated as soon as we have more details.

Sources: Act of 8 November 2023 on measures to support occasional workers in agriculture and horticulture, Belgian Official Gazette of 23 November 2023; Royal Decree of 8 November 2023 on the temporary exemption from advance payment of withholding tax referred to in Chapter 3 of the Act of 8 November 2023 on measures to support occasional workers in agriculture and horticulture, Belgian Official Gazette 23 November 2023, Draft Program Act, Parl. Doc. Chamber 2023-24, No. 3697.