Partial withholding tax exemption for real estate work

In 2023, companies in the construction and related sectors will still be able to make use (under certain conditions) of the tax measure relating to the partial withholding tax exemption for real estate work in teams on site.

What is the partial withholding tax exemption for real estate work in teams on site?

As of January 1, 2018, certain employers are eligible for a withholding tax exemption on wages awarded to workers who perform real estate work in teams on construction sites. To receive this tax benefit, a company must meet certain cumulative conditions:

The workers for whom the exemption is claimed must perform work in real estate on construction sites.
The work must, of course, be performed in teams. The definition of a team for the purposes of this measure is as follows: the work must be performed in a team or teams of at least two persons. The teams must perform the same or complementary work, both in content and scope.
The workers must devote at least 1/3 of their working time to these activities of real estate work on site.
This tax incentive can only be applied to the wages of workers who receive a certain minimum gross hourly wage (basic amount before indexation: EUR 13.75). The gross hourly wage here refers to the wage before deduction of social security contributions.
In addition, since April 1, 2022, companies subject to the obligation to declare real estate work to the ONSS/RSZ can only benefit from this obligation if this obligation is met.

It is important to note here that employers can only benefit from this tax measure if all the workers forming a team meet the above basic conditions. If one of the workers does not meet these conditions, the exemption will not apply. There is only one exception to this rule, namely the gross hourly wage condition.

Changement 2023