Copyright remuneration: 281.45 sheet now obligatory

24-03-2022

By Evelyn Ceulemans

As of January 1, 2022, the individual form 281.45 will be mandatory for all copyright income.

A draft law containing various tax provisions voted on 13 January 2022 introduces some changes for the reporting of royalties. As of January 1, 2022, individual sheet 281.45 is mandatory for all copyright income.

Sheet 281.45 and the summary statement 325.45 have existed for some time, but until recently were optional for copyrights that constitute movable income. For royalties that are qualified as professional income, there was an obligation to submit a fact sheet on the basis of the existing article 57 WIB92.

This will now change. As of 1 January 2022, the legislator explicitly adds to article 57, paragraph 1 WIB92 that from now on income from copyright and related rights must always be accounted for on an individual fact sheet, regardless of their qualification.

Sheet 281.45 for income year 2021 must be filed no later than April 30, 2022.

Be vigilant!

If you do not comply with this new declaration obligation, the penalties are not minus. So be extra vigilant when you grant royalties

  • If you do not comply with the new declaration requirement, you will not be able to deduct these remunerations as professional expenses.
  • In addition, the tax authorities can impose a special assessment for secret commissions equal to 100% of the professional expenses.
  • In the event of late filing, you must prove that the late filing was made in good faith.
  • In the case of tax on legal entities, the tax authorities can also impose a special assessment, which is also equal to 100% (Art. 225, paragraph 2, 4° WIB92).

Should you have any questions or concerns regarding this matter? We’ve got your back!

Evelyn Ceulemans

Senior Tax Consultant