Covid-19 – Summary of Measures Belgium

Direct Tax

– Deferral of tax payments (extend payment date) & deferral of prepayments
Wage withholding taX

• Flexibility on recording a bad debt reserve
• Flexibility on the application of the grandfathering clause under the new interest limitation rule
• Tax audits postponed
• Period to incur expenses for tax shelter postponed

VAT

• Filing deadline extended
• Reduced 6% VAT (instead of 21%) on the supply, intra-community acquisition and import of certain face masks, hydro alcoholic gels
• Accelerated VAT Refund for VAT return relating to February 2020
• Tax audits postponed
• Deferral of tax payments (extend payment date)

VAT

Employment

• Easier access to regimes of temporary unemployment
• Deferral of social elections
• Teleworking obligatory for all non-essential undertakings
• International measures for certain employees living cross-border and working at home

Other: Compensation for mandatory closure of businesses.

Flemish Government

• a lump-sum compensation of EUR 4,000
• businesses that can remain open on weekdays a compensation of EUR 2,000
• A compensation of EUR 3,000 is also foreseen for businesses that do not need to close but that can demonstrate that the turnover has decreased with at least 60% between 15 March 2020 and 30 April 2020 compared to the same period in the previous year

Walloon Government

• The Walloon government foresees a lump-sum indemnity of EUR 5,000 for certain businesses that have to close and
• EUR 2,500 for certain businesses that have to change their opening hours.

If you have any questions regarding this or any of the other initiatives offered to those affected by the current disruption, please contact Wim Wilssens at wim.wilssens@chbelgium.be.