New support measure: exemption from
payment of withholding tax for worker training
March 2021 – Since 1 January 2021, companies that provide their employees with more hours of training than the number required by the regulations have been exempt from paying withholding tax on earned income. If the employee undergoes at least 10 days of training at the expense of the employer in an uninterrupted period of 30 calendar days, the employer is exempted from paying to the Treasury an amount equal to 11.75% of the remuneration of the employee in question.
Who is exempt?
All employers in the private sector are eligible for this new measure.
The main condition for employees is that they must have been with the employer for at least six months. Training and internships for newcomers are therefore not eligible for exemption.
Training
The exemption applies only to employees who have completed training of at least 10 days over a continuous period of 30 calendar days. The minimum duration of 10 days applies to full-time employees. Where there is a reduced working regime, the 10-day period must be reduced in proportion to the working regime applicable.
These must be actual training days. If the worker was registered for training but was unable to attend (e.g. for health reasons), this day does not count, but the 30 calendar-day period may be extended in the event of suspension of the employment contract (e.g. in the event of the worker's illness, birth or adoption leave, strike or lock-out).
It does not matter on which days the training is taken: working days, days off...
Ten days out of thirty
The standard rule therefore requires at least ten days of training over an uninterrupted period of thirty calendar days.
Where the employer is a company where shift work or night work is carried out, the minimum of 10 days in an uninterrupted period of 30 calendar days is replaced by a minimum of 10 days in an uninterrupted period of 60 calendar days (but only if the employee receives a shift premium during this uninterrupted period of 60 days).
Where the employer is an SME, the requirement of ten days over an uninterrupted period of 30 calendar days is replaced by five days of training over an uninterrupted period of 75 calendar days.
Please note: an employer may only apply for this exemption ten times for the same worker.
On the other hand, an employee who has already been entitled to this support measure ten times may again be entitled to exemption from payment ten times with a new employer.
Nature of training
In principle, all training courses are eligible, whether formal or informal.
Training that is already compulsory by virtue of a legal or regulatory provision or a collective labour agreement is not eligible. Consequently, compulsory training for access to or maintenance in a profession (e.g. compulsory continuing training for a probationer notary) or compulsory safety training (e.g. compulsory training in asbestos, as referred to in Article VI.3-37 of the Code of Well-Being at Work) are excluded.
Also excluded are training courses taken into account for the calculation of compliance with a legal training obligation.
At the employer's expense
Training must be a professional expense for the employer. If the employer does not ultimately pay the cost of the training himself, he is not entitled to the exemption.
Exemption from payment of withholding tax
The exemption amounts to 11.75% of the remuneration of the staff member concerned. However, the basis for calculating this exemption is capped at EUR 3,500 taxable per employee. The part of the remuneration that exceeds this ceiling is not taken into account.
This ceiling of EUR 3,500 applies to full-time employment; it is reduced in proportion to the working regime of the worker concerned.
If the ten days of training are spread over two months, only the pay for the month in which the training was completed is taken into account.
Example
The employer employs ten employees and will normally have to pay 9,500 euros in withholding tax to the Treasury for the month of March.
The employer sends two employees (A and B) to a ten-day training course which takes place entirely in March.
Taxable remuneration
A's taxable remuneration in March amounted to €2,400, including €245 in arrears.
The taxable remuneration of B in March amounts to EUR 4,260.
Basis of calculation of the exemption
Worker A: 2,400 - 245 = 2,155 euros.
Worker B: 4,260 euros, limited to 3,500 euros.
Calculation of the exemption
The exemption from payment is equal to 11.75% of (2,155 + 3,500) = 664.46 euros. For the month of March 2021, the employer must therefore pay the Treasury 9,500 - 664.46, i.e. 8,835.54 euros.
Entry into force
The measure came into force on 1 January 2021. In practical terms, this means that the first uninterrupted period of thirty calendar days began on 1 January 2021. If you have sent a worker on a training course that ran from December 2020 to January 2021, an exemption is only possible if the number of training days in January 2021 is at least ten days.
