Latest news & developments
Update: Increased tax benefit percentages for advance tax payments – also for individual taxpayers
In our newsflash dated 6 April 2020 we have highlighted that, due to 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 for companies will (temporarily) be increased for the third and fourth quarters of assessment year 2021. Indeed, the Belgian
Update: Increased credit percentages for advance tax payments
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
OECD guidelines: COVID-19 impact on cross-border employment
In our newsflash of 13 March 2020, we highlighted that since the COVID-19 outbreak, due to travel restrictions and quarantine measures, many companies find themselves confronted with unforeseen and forced changes in the working pattern of their employees who are unable to perform their duties in their “normal” country of employment, especially in surrounding countries
Following the right procedures more important than ever when in financial distress
As the spread of Covid-19 undoubtedly has a huge impact on the economy, a significant number of companies will very likely be confronted with losses, possibly putting the going-concern of their business into question. Besides the necessary disclosure in the annual management report so as to reflect and elaborate on such impact in the “post-closing”
COVID-19 #7 Carve-out and sale of non-core or distressed businesses
In the current climate, it is expected that companies in a wide variety of industries will be confronted with a significant drop in sales volumes, possibly causing faltering cashflow positions or even cash crunches. Although the Belgian government, in concertation with financial institutions, are trying to stem the bleeding with short term measures, such as
Belgian Minister of Finance proposes Corona premium of EUR 1.000
In practice and also in recent media coverage, the question was raised whether employers/companies can provide employees with a (tax beneficial) cash incentive – other than a regular bonus payment – in order to motivate and reward employees who (are not staying at home due to temporary unemployment measures and who) are still allowed and
COVID-19 #6 Cash repatriation – capital reduction
Next to dividend distributions and (early) repayment of intercompany loans, a group may also consider a capital reduction to repatriate cash to the upper tier structure. Whereas a reduction of fiscally paid-up capital is in principle tax neutral between corporates, it may still have some (unexpected) tax consequences. Item #6: A capital reduction is not
NEDC vs NEDC 2.0 vs WLTP: new (updated) FAQs regarding the percentage of deduction of professional car expenses and calculation of the BIK for employees
A new FAQ has been published by the Belgian Tax Authorities that explains which CO2 emission value has to be used for the calculation of the deductible rate of company car expenses (FAQ, 25 March 2020). Indeed, using the WLTP or even the NEDC 2.0 emission value will lead to an increase of the car
