R&D projects or programs must be notified to BELSPO to qualify for the Partial withholding tax exemption.
BELSPO sent recently new guidelines. We want to assure you that Leyton will comply with these new guidelines to ensure that the tax exemption is applied correctly.
What should be mentioned in the BELSPO notification?
A valid notification must include at least the following information:
- The identification of the taxpayer of the withholding tax;
- The description of the project or program demonstrating that its objective exists in basic research, applied research, or experimental development;
- The expected start date and the foreseen end date of the project or program.
As of August 1, 2023, R&D projects or programs must be notified to BELSPO before their actual start date. Specifically, this means that a R&D project or program notified as of August 1, 2023 will no longer be able to benefit from the partial withholding tax exemption for R&D, if the R&D activities have already started before the notification date.
Changes as of January 1, 2025?
Additionally, BELSPO recommends following the guidelines below starting January 1, 2025:
- Each project or program can only be notified once
- Notifications must always be made with a meaningful title so that the content of the project or program can be inferred from this title
- The annual copying of an existing notification with a new identification number and with an expected start date of January 1 and a foreseen end date of December 31 of the same year will no longer be accepted. For a correct assessment of the duration of a project or program, it is best to rely on current practices for conducting R&D within the sector in which your company operates. Unreasonably long durations will not be accepted
- It is possible, among other things, to extend the foreseen end date of the previously notified project or program. Keep in mind that the foreseen end date of a project or program cannot be extended indefinitely. It is necessary to adjust the foreseen end date based on clear reasoning that aligns with the development roadmap
- For the notification of a program (which includes several projects), the expected start date coincides with the expected start date of the first project to be initiated, and the foreseen end date of the program coincides with the end date of the longest running project in the program. If a project falls under a notified program, you must be able to demonstrate this during a tax audit. To avoid discussions, it is recommended to keep a list of the projects that are part of the notified program
- It is the taxpayer’s responsibility to provide evidence that the notification has been done prior to the start date of the project or program. Furthermore, tax audits take place afterwards. For these reasons, it is strongly recommended to keep proof (for example, a print screen) before and after the update
Our support & advice?
Considering these guidelines, we can only remind you of the importance of providing us with information (i.e., expected start date, foreseen end date, and a brief description) about your new R&D projects or programs BEFORE they start, so we can fulfill on time the necessary formalities.
Do you have questions or would you like more information?
