Payroll Tax Exemption
If, as an employer from the private sector or a research institution, you employ researchers, you can obtain an exemption for 80% of the payroll tax due on their salary.
Exemption for master's and bachelor's degrees
This rule was established with the help of the Federal Science Policy Office, Belspo, and also applies to bachelor's degrees, where you can obtain an exemption of 80%, limited to 50% of the total amount of the exemption as applied to other employees with a specific master's and/or doctoral degree for small companies (for other companies this is limited to 25%).
For certain functions the exemption must be applied pro rata, in proportion to the time the employees concerned actually spent on research. This concerns assistant researchers and postdoctoral researchers at universities, colleges and recognised scientific institutions. Moreover, the projects or programmes only qualify if they are registered with the Federal Public Planning Service Science Policy.
You can register by stating the party liable for the payroll tax, describing the project or programme to which the research relates, stating the expected start and end dates, and demonstrating that the registered employees hold a valid degree and are employed in the registered research or development projects.
Small companies
Master's degrees: 80% exemption
Bachelor's degrees: 80% exemption
(limited to 50% of the total amount of the exemption as applied to employees with a specific master's and/or doctoral degree)
Other companies
Master's degrees: 80% exemption
Bachelor's degrees: 80% exemption
(limited to 25% of the total amount of the exemption as applied to employees with a specific master's and/or doctoral degree)
85% success rate
10 years of experience
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Frequently asked questions
What is the payroll withholding tax exemption for researchers?+
Employers who employ researchers do not have to pay 80% of the payroll withholding tax withheld on their wages over to the tax authorities. It is not a grant you apply for, but a structural reduction in wage costs: the money stays in the company. For companies with an R&D or development team this delivers a substantial saving, month after month.
Which employees and degrees qualify?+
The 80% exemption applies to researchers with a qualifying master's or doctoral degree. For bachelor's degrees it is likewise 80%, but limited to 50% of the total exemption amount for small companies, and to 25% for other companies. For certain roles the exemption is applied pro rata, in proportion to the time actually spent on research.
Do I need to register my research project with BELSPO?+
Yes. Projects or programmes only qualify once they are registered with the Federal Science Policy Office (BELSPO). At registration you state the party liable for the withholding tax, describe the research, give the expected start and end dates, and demonstrate that the declared employees hold a valid degree and are deployed on the research projects. We guide that registration.
Can I combine this exemption with an R&D grant or the Innovation Deduction?+
Yes. The payroll tax exemption lowers your wage costs, while a VLAIO R&D grant covers part of your project costs and the Innovation Deduction reduces the tax on your IP income. The three work on different axes and combine perfectly within a single innovation track. We make sure costs are allocated correctly so no double counting arises.
From when does the exemption deliver a benefit, and how quickly is it felt?+
The saving is immediate and recurring: from the moment the researchers are correctly registered, you keep 80% of their withholding tax in the company at every payroll run. Unlike a project grant, you do not wait for an approval decision per file. That makes it one of the most direct instruments for easing the cost of your research team.