R&D wage tax exemption: Reminder to update BELSPO notifications

Research and development (R&D) projects and programmes will only qualify for the 80% wage withholding tax exemption for researchers if, among other conditions, they are notified to the Belgian Science Policy Office (BELSPO). The mandatory notification process continues to trigger several discussions during tax audits and all employers applying this incentive are therefore encouraged to regularly review their BELSPO notifications to ensure compliance with the regulations.

As advised by BELSPO in their communication (Dutch I French) of 19 December 2024, for the time being, it is no longer acceptable simply to duplicate the prior year notification of projects and/or programmes. BELSPO is advising companies to regularly update the R&D programmes registered through the electronic BELSPO portal to reflect changes as they occur. This would include:

• Updating the information related to the researchers involved in the R&D programmes;
• Updating the technical description of the R&D project(s) and/or programme(s); and
• Ensuring that the end date of the R&D project or programme is in line with the business’s internal R&D roadmap.
  

Although there is no obligation to notify each individual subproject or cluster of subprojects separately when notifying a programme, it is recommended to make the notification as complete as possible to avoid discussions during an audit by the Belgian tax authorities. Additionally, it is strongly recommended that when registering a change in the project or programme registration, proof is kept (e.g., a print screen) of the notification before and after the change.

As 2025 approaches, all employers should remember to act and proceed with this update on the BELSPO portal. This will guarantee the required level of compliance and will support any conversations during tax audits. It is also important to remember that, based on Circular 2023/C/49 issued by the Belgian tax authorities on 27 April 2023 and a decision rendered by the Supreme Court on 6 January 2023, as from 31 July 2023, only projects and/or programmes that are notified before the effective start date of the related project and/or programme can be considered for the application of the partial R&D wage tax exemption. 

Lastly, R&D percentages (i.e., actual time spent by employees on R&D activities) are often a topic of discussion during tax audits. A time recording system can improve the accuracy of time reporting and will help employers provide tax authorities with the necessary evidence in the event of an audit. For this purpose, Deloitte Belgium has developed a simple online R&D tool to register project hours. Interested companies can contact the Deloitte Belgium Gi3 team, who are readily available to provide more information on this tool or to support with the regular update of BELSPO notifications.