Belgium: Tax prepayment relief for assessment year 2021 (COVID-19)

Belgium: Tax prepayment relief for assessment year 2021

The Belgian government has implemented several measures in the past weeks to mitigate the financial and economic effects of the temporary “lockdown” in response to the coronavirus (COVID-19) pandemic. The latest measure of the federal government relates to corporate tax prepayments.

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Companies will benefit from increased relief measures (“bonification”) for prepayments related to assessment year 2021 that are made during:

  • The third quarter—6.75% instead of 6%
  • The fourth quarter—5.25% instead of 4.50%

This relief is available, provided there is no dividend distribution between 12 March and 31 December 2020, and there is no capital reduction or repurchase of shares.

The percentage of the increase and the due dates do not change.

What relief to make available to companies that are not on the calendar year (not closing on 31 December) is still being considered.

Read an April 2020 report prepared by the KPMG member firm in Belgium

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