During their first years of operation, start-ups are partially exempt from the obligation to remit taxes withheld from salary. During the first four years of their existence, micro-companies qualify for a 20% exemption, while SMEs qualify for a 10% tax exemption.
The employer withholds 100% of the taxes due from the employee's salary, but only has to transfer 90% (or 80% in the case of a micro-company) to the treasury. Similar favourable tax measures already exist for qualifying researchers (an incentive which substantially reduces the salary cost of researchers working on qualifying R&D projects).
Employers registered with the Crossroads Enterprise Database for up to 48 months can benefit from this measure. In addition, the company cannot be in liquidation, bankruptcy or judicial reorganisation, an indication of (financial) difficulties.
This measure entered into force on 1 August 2015.