Belgium Announces COVID-19 Tax Measures

by Ulrika Lomas, Tax-News.com, Brussels

15 April 2020

On April 3, 2020, the Belgian tax authority announced an increase in the credit available for timely advance tax payments to provide businesses and the self-employed a liquidity boost amid the COVID-19 crisis.

Under Belgian tax rules, a surcharge is applied on tax due for the year if the total tax liability is not cleared by means of advance tax payments. However, a credit is available to offset a percentage of this surcharge if advance payments are made on time.

Under the newly announced measure, the tax authority has increased the credit rates for the third and fourth quarters of 2020. The new credit rates for companies not paying dividends are as follows:

• Q1 – 9.0 percent
• Q2 – 7.5 percent
• Q3 – 6.75 percent (up from six percent)
• Q4 – 5.25 percent (up from 4.5 percent)

Advance tax payments for the third and fourth quarters are due on October 10 and December 20, 2020, respectively.

As the measure is intended for companies with liquidity problems it does not apply to companies which: repurchase their own shares or decrease their capital; or pay or allocate dividends between March 12, 2020, and December 31, 2020.

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