In our newsflash dated 10 March 2020, we have highlighted the main aspects of the Belgian advance tax payment scheme.
Considering the current COVID-19 crisis and its impact on the Belgian economy, it has been decided that the tax credit related to the advance tax payments to be made for the third and fourth quarters of assessment year 2021 will (temporarily) be increased as follows:
| Period | Credit percentages (in principle applicable for the assessment year 2021) | Increased credit percentages |
| Third quarter of assessment year 2021 | 6% | 6,75% |
| Fourth quarter of assessment year 2021 | 4,5% | 5,25% |
This temporary measure is intended to support companies and avoid that those facing liquidity problems during the first two quarters of 2020 would be punished due to the applicable global surcharge of assessment year 2021 which amounts to 6,75% on the final amount of Belgian corporate income tax due upon assessment.
Please note that companies benefitting from the increased credit percentages for the third and fourth quarters of assessment year 2021 may not carry out with a capital reduction and/or dividend distribution in the period between 12 March 2020 and 31 December 2020. There is no application/approval procedure to be followed when a company benefits from measure.
As the first quarter advance tax payment still gives a credit of 9%, it can still be an opportunity to make a prepayment no later than 10 April 2020 depending on the (forecasted) cash available within the company/group and the estimated taxable basis of assessment year 2021.
Please feel free contact your regular contact person to discuss the above. He/she will be happy to support you or refer you to one of our specialists if needed.
