Mini tax shift: withholding tax exemption night and shift work is changing significantly SD Worx Knowledge Centre
The mini tax shift thoroughly amends the regulation on the withholding tax exemption night and shift work. As an example, there will be a tightening of certain conditions in order to benefit from the exemption. From 1 April 2022, for example, an employer must grant a minimum hourly bonus of 2% for shift work and 12% for night work in addition to the contractual gross hourly wage. Current system in a nutshell Companies in which employees carry out night and/or shift work and receive a bonus for doing so may qualify for this withholding tax exemption. The exemption amounts to 22.8% of the taxable remuneration of all employees who work in a system of night and shift work. It is applied to the withholding tax deducted from the salaries and the shift (or night) bonuses. In order to benefit from the exemption, a number of conditions must be met. In the case of shift work, the employees concerned must carry out the work in at least two shifts: • •
of at least two employees who carry out the same work both in terms of content and scope; that follow on from each other during the day without: o there being an interruption between the consecutive shifts; o the overlap being more than a quarter of their daily work.
In the case of night work, this concerns companies in which employees work between 20:00 and 06:00 pursuant to the work schedule applicable in the company, with the exception of employees who: ▪ ▪
usually start work from 05:00; only work between 06:00 and midnight.
The employees concerned must be employed in shift or night work for at least one third of their working time pursuant to the work schedule in which they are employed. This is the socalled one-third standard. New rules as from 1 April 2022 The withholding tax exemption night and shift work is changing in the following areas:
SD Worx Social/Legal News March 2022
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