Professional Reimbursement are tax-free

Starting from January 1, 2025, reimbursements for analytical expenses invoiced by professionals to their clients will no longer be subject to withholding tax. Prior to this change, reimbursements had different tax treatment based on whether they were expenses advanced on behalf of clients or analytical expenses incurred during the engagement. For the former, reimbursements were not considered as income for professionals, as long as the expenses were documented and in the client's name. All other reimbursements, like travel and meals, were taxed and subjected to withholding 20%.  With the new legislation, all type of reimbursements, including analytical expenses, will no longer contribute to income calculation and will not be subject to withholding tax.
This means that professionals will no longer have withholding tax on their compensation, but attention the related costs because they will also not be tax deductible.