Belgium: Tax and financial measures associated with COVID-19

Tax measures

• An automatic extension for VAT-purposes is announced. These deadline of the extension has two aspects:

An extension of the deadline for filing VAT returns: the normal monthly/quarterly VAT-declaration and the intra-community sales listing

An extension of two months for the payment due dates for VAT

Further there is also an automatic extension for filing the annual Belgian Sales listing (which is normally to be submitted by 31 March) until 30 April 2020

• There is an automatic extension of the due date for professional withholding tax on personnel wages:

• Deadline extension for the corporate tax declaration until Thursday, April 30, 2020 for filing corporate income tax and non-resident corporate income tax returns. This additional period only applies to declarations with a final submission date from March 16 to April 30, 2020.
• Faster VAT refund possible from Vat declaration of February 2020: instead of a VAT refund on May 29, 2020, or at least by June 30, 2020, thanks to this measure, the VAT-refund will be made by April 30, 2020. Please note that the taxpayer had to submit a February declaration via Intervat requesting the reimbursement of his VAT receivable before 4 April 2020.
• Postponement of the property tax due date depending on the region.
• In addition to the above measures, there is a possibility to apply for a payment plan, an exemption from moratory interest or a remission of fine related to late payment. Please note that this possibility relates to debts companies might already have with the Belgian authorities or that might occur in the next few months. As soon as a debt is certain and the company is not capable to pay this debt due to the economic consequences related to the Covid-19, an application (per debt) is possible.

Social security measures

• Automatic extension of payments to the NSSO from March 2020 until 15 December 2020 for a number of sectors. Companies can easily check whether they are entitled to this extension using their Belgian company-number.
• Extension of payments to the NNSO for all other sectors on demand and if certain requirements are met
• Deferral, reduction or exemption related to the payment of social security contributions for self-employed
• Self-employed can apply for a replacement income (transitional rights)
• In addition to the above measures, it is possible to apply for a payment plan

Employee and employer supportive measures

Employers who cannot guarantee social distancing or need to close down due to the measures taken by the Belgian government may apply for temporary unemployment benefits for their employees. The application procedure has been shortened and simplified. A partial temporary unemployment is possible as well. The unemployment benefits amount to 70% of the normal gross salary of the employee with a lump sum maximum of €2.754,76 per month. In addition the reginal governments can pay extra benefits.

Business support

Measures taken by the Flemish region government:

• Related to the mandatory shutdown, companies can apply for a nuisance incentive.
• If suffered a decline in turnover by 60% as compared with the same period of last year, companies can apply for a compensation premium.
• Guarantees on loans

Measures taken by the Walloon region government:

• Related to the mandatory shutdown, companies can apply for an incentive.
• Guarantees on loans

Measures taken by the Brussels capital region government:

• Related to the mandatory shutdown, companies can apply for an incentive.
• Guarantees on loans

Measures for self-employed individuals: “Overbruggingsrecht” or “Droit passerelle” (free translation: Bridging right)

• Self-employed persons could apply for a special compensation if they work in specific industries which had to close their business or if they ceased their professional activity during an uninterrupted streak of seven days.

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