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Belgium Increases Advance Payment Surcharge Credit Percentages to Assist Taxpayers with Liquidity Issues Resulting from COVID-19 — Orbitax Tax News & Alerts

The Belgian Ministry of Finance has announced an adjustment in the percentages used in determining the advance tax payment surcharge credit to assist taxpayers with liquidity issues resulting from COVID-19. When advance tax payments do not cover the final tax assessment for the year, a surcharge (tax increase) applies, which is currently equal to 7.0% on 103% of the total tax due, less prepayments, tax credits, withholding tax, etc. A credit against the surcharge amount is provided for timely advance tax payments.

For companies not paying dividends and companies paying dividends, the percentages being provided are as follows for quarterly payments:

  • Companies not paying dividends
    • Q1 - 9.0%
    • Q2 - 7.5%
    • Q3 - 6.75%
    • Q4 - 5.25%
  • Companies paying dividends
    • Q1 - 9.0%
    • Q2 - 7.5%
    • Q3 - 6.0%
    • Q4 - 4.5%

Increased percentages are also provided for personal income tax (for self-employed).

Since the measure is intended for companies with liquidity problems, the increased rates do not apply for companies that redeem their own shares or decrease their capital or for companies that pay or allocate dividends between 12 March 2020 and 31 December 2020.

Advance payment dates are unchanged and remain 10 April, 10 July, 10 October, and 20 December 2020.