Are these measures already official ?
Not yet. In this article, we look at a draft law presented by the federal government. The text still has to go through several steps, including approval by Parliament and publication in the Moniteur belge. Until the legislative process is complete, the proposed measures may still change. Therefore, they do not yet have legal value. We will keep you informed of developments via Lex4You.
Tax exemptions: an increasingly costly system
In some cases, you may pay the tax authorities only part of the advance tax levy withheld on your workers' remuneration and keep the rest. This is the principle of tax exemptions from the payment of advance tax levy. Of course, these exemptions are subject to conditions and formalities.
For years, these exemptions have been an important tool to reduce labour costs, support employment and encourage certain sectors (research, teamwork, young companies, athletes, etc.).
However, in recent years, this system has seen a considerable increase, mainly due to the gradual broadening of their scope and the rise in salaries.
So much so that today the expenses related to tax exemptions represent an increasingly large share of the State's total expenditure.
Introduction of a correction factor applicable from 2027
To address this issue, a programme draft law proposes applying a general moderation of exemptions, in the form of a correction factor, valid for all tax exemptions from 2027 onwards.
This measure should help neutralise the effects of inflation and the resulting indexation of remuneration (and, consequently, the increase in the advance tax levy withheld on these remunerations) on the total cost of tax exemptions.
In practice, a correction factor will have to be applied when submitting the periodic declaration of the advance tax levy: the unpaid amount will then be multiplied by a set coefficient. This coefficient will reduce the final exemption that the company can effectively benefit from.
Objectives of the measure
This measure does not aim to challenge the exemptions but to freeze, for three consecutive years, the total cost of the various exemptions in order to generate a budgetary yield.
The government's goal is that the tax exemption, after applying the correction factor, matches as closely as possible the monthly tax exemption enjoyed during the same period in 2026.
This measure also allows employers benefiting from tax exemptions to make a first estimate of the amounts due to the Treasury. The predictability, legal security and stability of the schemes can thus be maintained.
The government intends to guarantee the budgetary sustainability of these schemes while preserving their core purpose.
Factors determined based on forecasts
In this context, correction factors have been set based on inflation forecasts, salary indexation and the impact of the personal income tax reform.
Specifically, different factors have been set for the years 2027 to 2029 as follows:
- 97 % in 2027
- 93.35 % in 2028
- 95.9 % from 2029 onwards
However, the government knows these parameters may change differently from the forecasts. That is why it is planned that the King may adjust these percentages each year if actual inflation differs significantly from the forecasts, but only to meet the budgetary objective.
What does this mean for you as an employer ?
As an employer, you will continue to apply the usual exemption percentages. The correction factor must be applied only when making the advance tax levy declaration.
This calculation will then determine the amount that must finally be paid to the Treasury. As a result, the final exemption will be slightly reduced.
The coefficient will reduce the final exemption that your company can effectively benefit from.
This new system could also increase your administrative burden (especially if you combine several exemptions).
It means you will have to declare separately:
- The amount to which the correction factor has been applied
- The amount still due to the Treasury (using a separate code)
Numerical example
An employer may, for January 2027, claim a gross exemption of 100 000 euros (after calculating the advance tax levy and applying the usual rules).
The correction factor for 2027 is 97 %. It is applied as follows: :
100 000 euros × 97 % = 97 000 euros
The employer will therefore benefit from an exemption of 97,000 euros and will have to pay an additional 3 000 euros to the Treasury.
In the advance tax levy declaration, this employer must then indicate :
- The theoretical amount of the exemption (before applying the factor): 100,000 euros
- And, in a separate code, the difference due to the Treasury: 3,000 euros
Important
Even if the exemption amount decreases, for example due to fewer workers, the correction factor always applies to the amount actually due for the month concerned. However, this corrected amount can never exceed the advance tax levy actually withheld on the remuneration of the workers concerned.
What is Securex doing for you ?
The measure described above is not yet official. We are closely monitoring the situation and will keep you informed of developments on Lex4You.
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