close
Share with your friends

Belgium: Tax provisions in third package of stimulus measures (COVID-19)

Belgium: Tax provisions in package of stimulus measures

The third law containing tax measures in response to the coronavirus (COVID-19) pandemic was published on 23 July 2020 in the official gazette.

1000

Related content

This new law is intended to help companies address the economic crisis and includes various measures such as:

  • An exemption from paying the wage withholding tax for employers that have resorted to temporary unemployment for at least 30 days until 31 May 2020—the exemption available is 50% of the difference in wage withholding tax compared to May 2020 (for a maximum of €20 million) can be granted in June, July, and August 2020
  • A tax reduction for donations in 2020 (for individual income tax) with an increase in the rate of the reduction from 45% to 60% and a maximum amount from 10% to 20% of the net income
  • For donations of computers made to schools, the deduction (corporate tax) or tax reduction (individual tax) is extended until 31 December 2020
  • Further relaxing of conditions for tax reduction for child care—an extension for payments made in 2019 and from 30 June until 31 December 2020
  • Exemption and deduction of consumption vouchers—employers will be able to buy consumption vouchers from certified institutions for a maximum of €300 per employee until 31 December 2020. The vouchers will be valid until 7 June 2021 in the horticulture sectors and will be fully deductible for the employer and tax-exempt for the employee
  • A 100% deduction for reception costs made between 8 June and 31 December 2020
  • An investment deduction—increase to the rate from 8% to 25% for investments made between 12 March 2020 and 31 December 2020 (only for small companies), and a carryforward for unused investment deduction possible for two years, instead of one year, for investments made in 2019
  • The scope of the loss carryback has been narrowed to accounting years closing between 13 March 2019 and 31 July 2020 (instead of 31 December 2020)
  • Tax reduction (individual income tax) for acquisition of new shares of small companies of which the turnover dropped by more than 30% between 14 March 2020 and 30 April 2020
  • An extension of the annual insurance tax regarding payment facilities until the end of the year
  • No payment of value added tax (VAT) advances in December 2020
  • An extension of the VAT exemption for donations of computers to schools from 30 June until 31 December 2020
  •  Confirmation of the Royal Decree introducing the temporary reduced VAT rate of 6% for restaurant and catering services (excluding alcoholic drinks)


Read a July 2020 report prepared by the KPMG member firm in Belgium

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal