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Belgium Issues Release on Extended and New Support Measures for COVID-19 — Orbitax Tax News & Alerts

Belgium's Federal Public Service (SPF) Finance has issued a release on the extended and new support measures for COVID-19, which are pending publication in the Official Gazette but are already in effect. This includes the extension of the following measures until 30 June 2021 (from 31 March 2021):

  • the 15% reduction in the withholding tax for temporary unemployment;
  • the system under which no withholding tax is withheld from remuneration for services in the care and education sectors;
  • the reduction of VAT to 6% for masks and hydroalcoholic gels; and
  • the deferral on request of the payment of personal income tax, corporation tax, withholding tax, and VAT, for companies that can prove that they are affected by the pandemic.

The release also confirms new measures previously announced, including the 30% tax cut for landlords that forgive rent for tenants that were forced to shut down due to the COVID-19 measures, the reduction in the interest rate for late payment of VAT and excise duties for the second quarter of 2021, and the reduction of the threshold for VAT refunds to EUR 400 for periodic declarations and to EUR 50 for annual declarations and start-up companies.