A tax benefit that is gaining more attention
Tax exemptions are an important support measure for companies, but they also involve significant costs for the state.
To partly offset these costs, the government will introduce from the income year 2027 a correction factor that will apply to all exemptions from the remittance of advance tax levy.
Read more: “Tax exemptions: introduction of a correction factor”.
In addition, the tax authorities are increasing controls, with exemptions for shift and night work and research & development (R&D) receiving special attention. The administration not only checks the correct use of the exemption but also whether you as an employer can provide enough evidence to support that use.
Carry out a self-assessment in good time
Specific conditions apply to each exemption from the remittance of advance tax levy.
Read more: “Tax reductions (exemptions from remittance of advance tax levy)”.
Do you benefit from tax exemptions? Then it is wise to regularly check whether:
- The conditions for applying the exemption have been met
- The necessary evidence is available
- Time records, personnel schedules and payroll data are consistent
- The required documents can be quickly presented during a control
A tax audit often covers several years. When documents or data are missing, it can be especially difficult to reconstruct them afterwards.
Therefore, correct use of the exemption in payroll processing alone is not enough. As an employer, you must be able to prove that all application conditions have been met and that the necessary evidence is available.
Tax exemption for work in real estate: a particularly strict burden of proof
For certain exemptions, the burden of proof is especially strict. This applies in particular to the tax exemption for shift work in the construction and related sectors.
Employers in these sectors are strongly advised to keep detailed records per project and per shift of who worked where and when. A well-documented file can make a big difference during a tax audit.
Tax audit coming up?
Would you like to prepare better for a tax audit? More information about preparing for an audit and the data you must keep available for the tax authorities can be found in our following articles:
Read more: “How can you prepare for a possible tax audit?”
Read more: “Tax exemptions: more information required”.
Read more: “What evidence must be provided to the tax administration?”
What are the risks in case of an audit?
If the tax authorities find that an exemption was applied fully or partly unjustly or cannot be sufficiently supported, this can have serious financial consequences.
For example, the administration can still claim the unremitted advance tax levy, increased with default interest and any tax surcharges or administrative sanctions.
Given the amounts involved with these exemptions, the financial consequences can be considerable.
What information do we ask from you?
You will soon receive again our annual questionnaire about the application of tax exemptions.
Through this survey, you are invited to check whether your company meets the conditions of a tax exemption and, if applicable, to give Securex permission to apply certain exemptions from the remittance of advance tax levy in payroll processing.
