Belgium

Tax and financial measures associated with COVID-19

22 March 2021

Tax measures

  • Companies can under certain conditions opt for a tax-free loss carry-back of the profits of fiscal years 2019 and 2020
  • To restore their solvency, companies can opt to create a tax-free ‘recovery reserve’ in their tax return. This regime allows companies to decrease their profit of tax year 2022, 2023 and 2024.
  • 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

  • Compensation premium related to social security contributions for companies active in certain
  • No sanction for non-payment of advances.
  • 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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