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A well-informed contractor is worth two: the withholding obligation

Gepubliceerd op 13/01/2025

Being held liable as a client for the social and/or fiscal debts of your (sub)contractor? This is certainly not how you want to start the new year. However, this can become a reality due to the principle of the withholding obligation. Many contractors and project owners are not familiar with this principle, so we will outline the most important points below.

What is the withholding obligation?

If a (sub)contractor you enter into a contract with has social or fiscal debts, you are obligated to withhold part of their invoices and directly transfer it to the relevant authority before paying the invoice.

  • If the contractor has fiscal debts, you must withhold 15% of the amount owed on the invoice and transfer it to the Federal Public Service Finance (FOD Financiën).
  • If the contractor has social debts, you must withhold 35% of the amount owed on the invoice and transfer it to the Social Security (RZS).

This withholding obligation only applies to companies carrying out or commissioning activities in the construction, meat, or security/surveillance sectors.

What are the sanctions?

If you, as the client, fail to comply with the withholding obligation, you risk being jointly liable for the social and/or fiscal debts of your (sub)contractor. However, the joint liability is limited to the total amount of the works assigned to the contractor or subcontractor—i.e., the total amount on the invoice. You are not automatically responsible for all the social and/or fiscal debts of your contracting partner.

Additionally, an administrative fine will be imposed, equal to the amount you should have withheld from the invoice.

How can you check this?

Checking whether your (sub)contractor is subject to the withholding obligation is very easy via https://www.checkinhoudingsplicht.be/.  Simply enter the company number of the (sub)contractor, and you can immediately see if the withholding obligation applies.

If no withholding obligation is found, you can generate a certificate of your inquiry as proof that you have conducted the check. Be sure to keep this certificate with the corresponding invoice. Note that the certificate is only valid for a limited time. If you later pay a new invoice to the same (sub)contractor, it is advisable to perform the check again.

Important to know: The withholding obligation only applies to works carried out on behalf of a company. If you, as a private individual, are having construction works done, you do not need to check this, as long as your home is used exclusively for private purposes. If you use part of your home for professional purposes, you are required to perform the check.

Withholding obligation as a red flag before signing a contract

A company that falls under the withholding obligation does not end up there by chance. Being subject to this obligation often signals potential issues with the solvency of the company in question. Therefore, it is not only important to check if your (sub)contractor is subject to the withholding obligation when paying invoices but also to check this before signing a contract.

Even if the social and/or fiscal debts only arise during the execution of the contract, the moment when the invoice is to be paid will determine whether the withholding obligation applies.

New in 2026: Withholding obligation for unpaid social contributions

It is better to be informed sooner rather than later about the withholding obligation, as there are upcoming extensions. Starting in 2026, it will be mandatory to check if your self-employed (sub)contractor has unpaid social contributions of more than €2,500. In this case, you must withhold 15% of the amount owed and transfer it to the National Institute for Social Security for Self-employed Workers (RSVZ).

There are, however, some exceptions to this rule. The obligation does not apply to private clients, nor if the payment deadline for the social contributions has not yet passed, or if there is an instalment plan that is being adhered to. Additionally, the new obligation does not apply when there are fiscal or RSZ debts, as these take precedence.

Are you yourself subject to the withholding obligation?

If you are subject to the withholding obligation but disagree with the calculation of your outstanding debt, and you are in dispute with the government while the withholding obligation has already been published online regarding your company, this can have a significant impact.

On March 16, 2023, the President of the Labor Court in Turnhout ruled that publication on a publicly accessible website is only allowed when the social debt is established and due. In all other cases, such publication causes reputational and commercial damage.

Since the debt was not established, the RSZ was ordered, under penalty of a fine of €1,000 per day of delay, to remove the mention of being a company with social debts from the website, pending a final ruling on the matter.

Do you have any questions about the withholding obligation or are you subject to it wrongly? Don’t hesitate to contact our office so that we can assist you with this.

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