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#Tax & Legal #Business & International Tax #Corona #Support Measures

Financial support measures relating to the Coronavirus (COVID-19)

Monday 16/03/2020
Financiële steunmaatregelen Corona

Since the arrival of the Coronavirus in Belgium and its neighbouring countries, the economic impact on the business community has been increasingly worrying.

Several sectors are having to deal with suppliers reducing or halting production, with customers cancelling orders because of the Coronavirus, or are even facing the closure of their business as a result of the stringent prevention measures that will take effect from 13 March 2020. This undoubtedly has serious financial consequences for businesses.

In order to overcome these financial difficulties, the FPS Finance has introduced support measures to temporarily give companies more financial breathing space.

Which companies are eligible?

Any natural or legal persons in possession of a company registration number (Central Enterprise Databank), who are affected by the Coronavirus, are eligible regardless of the sector in which they operate.

The disruption must actually be demonstrated.For example, financial hardship can be demonstrated by:

  • A reduction in turnover:
  • A significant drop in orders and/or reservations;
  • Consequences of a 'chain reaction' with partner companies.

Which debts qualify for payment deferral?

Companies can obtain a repayment plan for the following:

  • Withholding tax
  • VAT
  • Personal income tax
  • Corporation tax
  • Legal entity tax.

The FPS Finance will also grant an exemption for interest on arrears and fines for non-payment will be waived.

Which conditions must be met in order to qualify for the support measures?

The support measuresare conditional upon:

  • compliance with the conditions concerning the submittal of declarations; and
  • the debts must not result from fraud.

Support measures shall be revoked in the following instances:

  • if the agreed repayment plan has not been complied with, unless the debtor contacts the administration in good time;
  • in the event of collective insolvency proceedings (bankruptcy, judicial reorganisation, etc.).

How do you apply for a payment deferral?

Upon receipt of a tax assessment or notice of payment, a company must submit a single application for each debt that applies to all measures.

The application must be submitted by e-mail or by post using a form provided by the FPS Finance.The form and contact point authorised to deal with these measures can be found on the FPS Finance website.

The application must be submitted by 30 June 2020 at the latest and the company can expect a reply within 30 days of the day on which the application was submitted.

Please do not hesitate to get in touch with your contact person to discuss the measures mentioned above if you are experiencing financial difficulties as a result of the Coronavirus.

An Lettens
An Lettens
Partner Tax & Legal Services