How should the employer apply the levy at source (PAS)?

Verified 07 April 2021 - Directorate for Legal and Administrative Information (Prime Minister)

The employer must apply the withholding tax (SAP) on employees' income. He must comply with the rates transmitted by the tax authorities by means of a 2-stage procedure: the filing of the registered social declaration (DSN) followed by the business report (CRM).

The system of the withholding tax relates to salaries, wages and the taxable portion of redundancy payments.

On the other hand, one-off income is not affected by the withholding tax. Examples are: profit-sharing or profit-sharing payments, severance payments for the termination of the service of the company's agents and managers.

Nominative Social Declaration (DSN)

Every month, the company must file a registered social declaration (DSN).

Company of less than 50 employees

The registered social declaration must be made on the 15th of the month.

It shall contain the following information:

  • "Individual" block: taxpayer identification and remittance data
  • Payment block: bank details of the company concerned for the purpose of the direct debit
Company of more than 50 employees

The registered social declaration must be made on the 5th of the month.

It shall contain the following information:

  • "Individual" block: taxpayer identification and remittance data
  • Payment block: bank details of the company concerned for the purpose of the direct debit

Business Reporting (CRM)

Every month, 8 days after NSN, the tax department makes the business report (CRM) available to the company directly in the payroll software.

Example :

The January NSN will be filed on February 5 and the company will receive the MRC on February 13.

The applicable rate may be changed in the event of a change in the employee's family situation. Only the employee can request this rate changeHowever, he has to go to the tax department.

On the other hand, the request is valid only until the end of the year in which the amendment request is made. He will have to reapply for the rate to be changed again.

FYI  

trainees and apprentices are not affected by the withholding tax.

Non-reporting or delay

Where the employer does not file the registered social declaration or has done so but is late, it will be sanctioned by the tax authorities. He must pay a fine corresponding to 10% the amount of the withholding tax which has been forgotten or not declared. The minimum fine shall be €50.

Reporting error

Where the employer has not declared the correct amount or has applied a lower tax rate than that transmitted to the tax authority, it will be sanctioned by the tax authority.

He must pay a fine corresponding to 5% the amount of the withholding tax omitted. The minimum fine shall be €250.

Errors or omissions in the levy at source may be rectified during the calendar year in the declarations by means of a "regularizations" block which includes all the elements necessary for the corrections to be made.