On 2 May 2024, the Belgian parliament approved amendments to the legislation on the partial wage withholding tax exemption for shift work (see Deloitte's Tax Alert of 25 March 2024). The changes are in response to a judgment by the Constitutional Court in which the court refined the definition of shift work, stating that only shifts performing the same work in both purpose and magnitude may apply the tax incentive. This decision caused significant uncertainty for companies applying the tax measure.
The transitional measure adopted should provide legal certainty in applying the tax incentive, and gives companies the choice between the application of the existing system, or an alternative system which can be applied retroactively as from 1 January 2021.
More detailed information on the alternative system will be provided once the amendments have been ratified by the king and the amended law is published.
Do not hesitate to reach out to us if your organisation is contemplating the retroactive application of the new measure.
Key contacts
Filip Smet
Filip is a partner in the Tax Dispute Resolution team within Deloitte Legal, focusing on direct tax risk management and litigation. Filip assists taxpayers during audits, negotiations and litigation with the tax administration concerning income taxes and private wealth structuring. Furthermore he has a special focus on the G&PS sector, acting regularly on all questions concerning the specific tax regime for the sector. He has extensive experience handling litigation cases before the Belgian courts, including the Constitutional Court, as well as the European Court of Justice. Filip is recommended in the Legal 500 for tax litigation work.
Annick Visschers
Annick is head of the Tax Dispute Resolution team of lawyers at Deloitte Legal. She specialises in Belgian and international tax law and focuses on tax risk management, criminal law in tax matters, tax litigation and tax recovery. She also acts as a lawyer in tax proceedings before the Court of Cassation and the Court of Justice. She is a recommended lawyer in the Legal 500 guide.
