A one-time depreciation deduction of 25% of the value of tangible or intangible assets is extended through 31 December 2022 for small and medium-size companies, self-employed persons or professional license holders—a relief measure offered in response to the coronavirus (COVID-19) pandemic.
The additional 25% depreciation deduction was originally scheduled to expire 31 December 2020.
Any unused amount of the depreciation deduction can be carried forward indefinitely by individuals, and can be carried forward by SMEs only to the following tax period.
There are certain conditions and thresholds that must be satisfied in qualifying for the additional depreciation deduction, including an obligation to obtain a certificate from the appropriate regional authority. Other conditions are based on the number of workers (cannot exceed 50 workers determined on an annual average); the turnover (excluding VAT is less than or equal to €9 million); and the balance total (is less than or equal to €4.5 million).
Read a March 2021 report (French) prepared by the KPMG member firm in Belgium
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