Focus on tax exemptions
Due to the budget deficit and the need for additional revenue, the tax authorities are increasing their controls. Employers who benefit from an exemption from withholding tax are particularly under scrutiny.
Read more: “Stricter controls on advantageous tax schemes | Securex”
Particular attention to shift work on construction sites
In 2018, the government expanded the tax exemption for shift work to include work on construction sites.
From that moment on, not only employers in industrial sectors could benefit from the exemption, but also those in construction and related sectors. However, a modified definition of “shift work” applies to them.
Read more: ‘What is shift work in immovable property (construction and related sectors)?’
For shift work on construction sites, it is sufficient that the work is carried out in one shift with at least two persons (and not necessarily in two shifts). Moreover, these persons may perform complementary work in terms of content and scope. It does not have to be the same work.
Shift work on construction sites: a very strict burden of proof
During a tax audit, you as an employer must demonstrate that your employees have effectively performed work in immovable property on construction sites for at least one third of the working hours.
To do this, you must provide the tax authorities with a nominative list containing specific information.
First tightening: a more comprehensive nominative list
Initially, the nominative list for night and shift work only needed to include the full identity of each employee involved and the month in which they worked shifts.
Since April 1, 2022, however, employers must provide much more information to the tax administration via a more comprehensive nominative list.
What constitutes a well-founded and conclusive file and what does case law say?
Even well-prepared employers are subject to strict scrutiny. The Court of Appeal in Antwerp confirmed this in four recent rulings:
- First and foremost, the burden of proof is entirely on you as the employer
- Furthermore, the interpretation of what constitutes sufficient evidence has been tightened:
- Job titles and descriptions are not sufficient to demonstrate the nature of the activities
- Software tools and analyses are not enough if there is no concrete evidence that the employees are effectively performing work in immovable property in shifts on the site
- Simultaneous presence is not the same as shift work: being together on a site is therefore not evidence that work is being done in shifts
- CheckInAtWork and sectoral safety regulations are insufficient: they do not prove that there is actually work being done in shifts.”
What does Securex do for you ?
If you have questions about the application of an exemption from withholding tax, Securex Legal Advisor is happy to assist you via myHR@securex.be
Source
- Four rulings from the Court of Appeal in Antwerp dated May 6, 2025 (Antwerp May 6, 2025, 2023/AR/1570; 2023/AR/1571; 2023/AR/1572; 2023/AR/1573)
