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Parliament adopts transitional measure addressing tax incentive for shift work

Global Employer Services | Reward & Mobility Alert

On 2 May 2024, the Belgian parliament approved amendments to the legislation on the partial wage withholding tax exemption for shift work (see our 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.