Circular 2020/C/45 pertaining to the consequences of the crisis caused by Covid-19 stipulates conditions for the application of the conditions relating to the exemption from write-downs on trade receivables (published at tax rate).

The condition that the probability of loss on the receivable must be demonstrated by special circumstances that occurred during the taxable period and not by a purely general risk retains its full significance.

However, the Administration has confirmed that the crisis caused by Covid-19 is an exceptional circumstance justifying the exemption of write-downs on trade receivables for companiesthat are in arrears with payment of these receivables as a direct or indirect consequence of the measures taken by the federal government.

It goes without saying that companies will have to identify and clarify any debtors with solvency problems in statement 204.3.

The loss assessment for a claim will have to be provided for each debtor. However, some flexibility can be applied when assessing the collection difficulties of company debtors whose turnover has fallen considerably as a result of the restrictive measures imposed by the federal government.

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Last update: 30/04/2020