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Belgium Issues Decree on Salary Withholding Tax Exemption for R&D Personnel — Orbitax Tax News & Alerts

Belgium has published in the Official Gazette the Royal Decree of 19 July 2018 on the extension of the salary withholding tax exemption to R&D personnel holding bachelor's degrees. The decree provides that effective from 1 January 2018, employers of R&D personnel holding bachelor's degrees are exempted from withholding up to 40% of the salary tax. For SME's, the maximum amount that may be exempted is up to 50% of the withholding exemption applied for R&D personnel holding specified master's or doctorate degrees. For other companies, the maximum amount that may be exempted for R&D personnel holding bachelor's degrees is limited to 25% of the withholding exemption applied for R&D personnel holding master's or doctorate degrees.