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Corona & Tax measures

Taxes: what are the measures taken by the government to help the taxpayers as a result of the Covid-19 related crisis?

The spread of the coronavirus (COVID-19) forces the Belgian government to take drastic measures to ensure the protection of public health. Although required, these measures have a negative impact on the economy in general, including for businesses.

Amongst these measures is the obligation for companies to organize homeworking for every position where this is possible without exception and the closing of non-essential shops and retail.

Aware of the negative impact of this outbreak on the economy, the Belgian government adopted support measures to mitigate the economic impact of the Covid-19 for businesses, entrepreneurs and also for households, as much as possible.

 

First of all, the government provides specific assistance to businesses and individuals, regardless of their sector of activity, who are facing financial difficulties as a direct result the Covid-19 spread and  the measures taken by the government (e.g. a drop in turnover, a significant drop in orders and/or bookings, etc.).

These companies can request for payment modalities prior to 30 June 2020 for personal income tax, corporate income tax, income tax on legal entities, VAT and payroll tax.

These payment arrangements are:

  • an extended payment plan for tax debts;
  • an exemption of late payment interest; and
  • remission of fines due to non-payment.

On the other hand, The tax authorities have extended to the benefit of all taxpayers the filing deadline for corporate income tax return, legal entities tax return and non-resident tax return which should have been filed between 16 March 2020 and 30 April 2020, until 30 April 2020.

The tax authorities also automatically grant an additional period of two months in addition to the normal period for the payment of payroll tax, VAT, personal income tax, corporate income tax, non-resident tax, and legal entities tax.

This deferral  of payment means that taxpayers can pay later without risking  late payment interest or fines from the tax authorities. 

If this additional period is not sufficient, it will be possible to agree with the tax authorities on additional payment arrangements, such as a payment plan and the non-application of interests on late payments.

 

As part of the support measures, the following deadline for VAT return and payment have been extended:

  • the deadline for filing the monthly VAT return for March 2020 or the first quarter VAT return is extended to 7 May 2020. The deadline for the payment of VAT is extended to 20 June 2020;
  • The deadline for filing the monthly VAT return for April 2020 is extended to 5 June 2020. The deadline for payment of VAT is extended to 20 July 2020.

Furthermore, the general deadline for the annual filing of the VAT client listing is extended until 30 April 2020.

 

Any other question?

Should you have any further questions, do not hesitate to contact our Tax team.