Advocaten / Avocats / Lawyers

Home>News>Covid-19>My employees are working overtime. Are there any tax incentives I could benefit from?

Monday, 20 April 2020

My employees are working overtime. Are there any tax incentives I could benefit from?

Daan Buylaert

Daan Buylaert

Partner
Brussels
Laurine Vanherck

Laurine Vanherck

Senior Associate
Brussels
Kimberley De Plucker

Kimberley De Plucker

Senior Associate
Brussels

In a press release of 11 April 2020, the government announced a second wave of measures to support the Belgian economy. One of these measures which is soon to be expected, is a tax exemption for voluntary overtime performed in critical sectors in the period from 1 April 2020 until 30 June 2020.

Based on what circulates, the new regime will allow employees, working in a critical sector, to perform maximum 120 additional overtime hours during the period 01/04/2020 – 30/06/2020, next to the existing regime of voluntary overtime hours. The maximum of overtime hours performed by these employees will be 220 per year (existing + new regime).

The new regime will have the following key features:

  • Gross salary = net salary (tax and social security exemption)
  • No overtime pay is due
  • No recuperation time must be granted

For employers active in critical sectors, who are in a great need of employees willing to work due to an increase of activities, this proposal is definitely a welcome measure in order to motivate employees to perform overtime hours amid the on-going COVID-19 pandemic - to be followed up!

Tiberghien Brussels

Tour & Taxis

Havenlaan|Avenue du Port 86C B.419
BE-1000 Brussels

T +32 2 773 40 00

F +32 2 773 40 55

info@tiberghien.com

Tiberghien Antwerp

Grotesteenweg 214 B.4
BE-2600 Antwerp

T +32 3 443 20 00

F +32 3 443 20 20

info@tiberghien.com

Tiberghien Ghent

Esplanade Oscar Van de Voorde 1
BE-9000 Gent

T +32 9 216 18 00

info@tiberghien.com

Tiberghien Hasselt

Torenplein 7 B13.1
BE-3500 Hasselt

T +32 11 57 00 13

info@tiberghien.com

Tiberghien Luxembourg

23, Boulevard Joseph II
LU-1840 Luxembourg

T +352 27 47 51 11

F +352 28 66 96 58

info@tiberghien.com