BELSPO has recently worked with Belgian tax authorities to clarify the Withholding Tax (WHT) exemption process for R&D, with the goal of reaching a more uniform point of view regarding the content of the application procedure and advice. This harmonization, initiated in spring 2024, is a significant step forward, addressing the need for clearer guidelines amidst various judicial developments.
Here are some key highlights of the new BELSPO directives:
- One Submission Rule: Each project or program can only be submitted once. Copies with minor content changes will be viewed as repetitions and will not qualify for partial exemption of WHT. Additionally, annual resubmissions of the same project are no longer accepted.
- Advance Submissions: Submissions must be made in advance, though actualisations are both possible and encouraged.
- Dual-Part Advice Requests: Advice requests will now consist of two distinct components: the qualification of the project/program itself and the qualifications of the diplomas of the individuals involved. This dual focus ensures a more thorough evaluation process.
These clarifications are a welcome development and align closely with the strategies and best practices that PwC and PwC Legal have always advocated. It’s reassuring to see this level of clarity and alignment, fostering compliance and innovation.
If you have any questions or need guidance on navigating these new directives, please feel free to reach out to Gauthier Vael, Pierre Demoulin or Tibo Gisquiere (PwC Legal).
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