Sector of construction sites: additional reduction of the tax burden within the framework of overtime

Auteur: Peggy Criel
Datum:

Since 1 April 2014, persons present on temporary or mobile construction sites must be registered. This obligation is only valid provided that the total amount of the activities on those construction sites equal or exceed € 800,000 excluding VAT. If workers work overtime for an employer who uses an electronic attendance recording system on the temporary or mobile construction sites, the related reduction of the tax burden shall be granted for the first 180 hours of overtime instead of the first 130 hours of overtime. In this Infoflash, we recall the principles of the reduction of the tax burden.

Since 1 April 2014, the presences on temporary or mobile construction sites must be registered electronically. In our Infoflash of 26 March, we will explain this new obligation.

  • Exemption of the advance payment of withholding tax

Certain employers benefit from an exemption of the advance payment of withholding tax for some categories of workers who work overtime.

The withholding tax which is not payable is a percentage of the gross amount of the remunerations serving as a calculation basis for the legal overtime pay:

Percentage of the legal overtime pay

Percentage of the exemption from the advance payment of withholding tax

20 %

32.19 %

50 % or 100 %

41.25 %

  • Reduction of taxes

For his part, the worker benefits from a reduction of taxes when working overtime. The workers must have worked overtime during the taxable period which result in an entitlement to a legal overtime pay. 

The reduction of taxes equals a percentage of the gross amount of the remunerations serving as a calculation basis for the legal overtime pay:

Percentage of the legal overtime pay

Percentage  of the tax reduction

20 %

66.81 %

50 % or 100 %

57.75 %

The reduction of taxes already becomes effective on the level of the calculation of the withholding tax for the month in which the overtime was performed.

More detailed information with regard to the reduction of the tax burden can be found in our Infoflash of 10 January 2014.

In principle, the reduction of the tax burden for working overtime is only granted for the first 130 hours the worker has performed as overtime during the taxable period.

As from 1 April 2014, this limit was raised to 180 hours for the sector of construction work, on condition that the workers are employed by an employer who uses an electronic attendance recording system on the temporary or mobile construction sites.

Source: Programme Act (I) of 26 December 2013, Moniteur Belge 31 December 2013

Auteur: Peggy Criel

25/04/2014