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Belgian Parliament Considering Draft Bill on Tax Liability of Directors, Contractors, and Others — Orbitax Tax News & Alerts

The Belgian parliament is considering a draft bill containing several tax liability provisions, including joint and several liability of directors, contractors in respect of subcontractors, and others. In particular, the draft bill provides:

  • In case of companies and associations, directors may be held liable for the payment of wage (withholding) tax and VAT obligations arising from 1 January 2020, as well as criminal penalties, although for large companies, the liability may apply for any outstanding tax debt;
  • In case of non-resident entities without legal personality but with a form comparable to that of a company with legal personality under Belgian law, shareholders and partners in the entity may be held liable for the payment of outstanding tax debts in proportion to the participation in the entity's capital;
  • In case of subcontractors, the contractors may be held liable for the payment of outstanding tax debts, in particular in the concrete sector, with the exclusion of green sectors (agriculture and horticulture); and
  • In case of a mergers and divisions, the acquiring or beneficiary company will be held liable for the payment of the outstanding tax debts of the acquired company.

In addition to the tax payment liability provisions, the draft bill also provides for the elimination of the waiting period before tax payment demands are issued when the rights of the Treasury are at risk.