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Going forward, the tax authorities will raise your taxes if you wrongly apply a wage withholding tax exemption.

To ensure that you file your tax return on time and correctly, the law provides for tax increases or penalties. These penalties also apply to wage withholding tax returns.

However, the tax authorities could only impose a tax increase in respect of withholding tax if you (1) did not file a return, (2) filed a late return or (3) if your payment was insufficient.

For a withholding tax return where you mistakenly applied a discount because, for example, you did not meet all the conditions there was no legal basis for a tax increase until recently. Just think of the many conditions you had to meet to apply the discount for night work, shift work or scientific research.

The lawmakers rectified this loophole this year. Depending on the number of offences you have already committed, the tax authorities can now impose a tax increase of 10% up to 200%.

Do you not transfer part of the withholding tax deducted from your employees’ pay to the treasury because you apply a tax discount? Then it becomes even more important to check whether you comply with all legal requirements.

Are you in doubt as to whether you qualify for a discount or would like specific advice? Contact our experts!

© Van Havermaet International 2024

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