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#Tax & Legal #Business Legal #Corona #Self-employed #Social Security Contributions #Delay Of Payment

I am self-employed and my income is decreasing due to the Corona crisis, do I still have to pay my social security contributions?

Wednesday 08/04/2020
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In that case, you can request a reduction of your contributions, file a deferral of payment or apply for an exemption from social security contributions.

1. You can apply for a reduction in your contributions

Is your current income lower than the provisional calculation basis of your social security contributions 2020? In that case, you can apply for a reduction in social security contributions. You must demonstrate that you are suffering from the consequences of the Corona virus and that your estimated professional income is lower than one of the legal thresholds. You can apply for reductions in social security contributions through your social insurance fund.

2. You can apply for deferment of payment

You can apply for deferral of payment for the first two payments of 2020.

Submit your application before 15 June 2020 !

For this purpose, you can send an e-mail to your social insurance fund, mentioning:

  • Application for postponement of payment Coronavirus
  • Your surname, first name and place of residence
  • Your national number
  • Your company number, the name and the registered office of your company
  • The sector in which your company is active

Important : add a piece of evidence showing that you are suffering from the effects of the Coronavirus, e.g. proof that your turnover has decreased. Is your application complete? Then you can benefit from one year's extension to pay your contributions.

Make sure that the contributions for the first quarter are paid by 31 March 2021 at the latest. The contributions for the second quarter must be paid by 30 June 2021 at the latest.

Companies can also request a deferment of payment or an exemption for the 2018 regularisation contribution (this is a recalculation that you now receive from your social security contributions paid in 2018, this recalculation is based on the income that is now passed on from the tax authorities). In case of a recalculation and the amount is due before 31 March or 30 June, you will get 1 extra year to pay this. For a regularisation that you have to pay before 30 September 2020, you will get time until 30 June 2021. 

3. You can apply for exemption from social security contributions

If, as a self-employed person, you are confronted with temporary financial difficulties as a result of the Coronavirus, you can apply for exemption from social security contributions. After receiving the statement for the second quarter, you submit a global application for the first two quarters.

You can apply for this exemption directly via the portal of the government (NSSO) or via the social insurance fund.

This measure only applies to self-employed people in their main profession and spouses/helpers with maxi status.

Attention : The quarters for which you receive an exemption do not count for the calculation of your pension. If you have only received an exemption for your regularization contributions, your paid provisional contributions do count for the calculation of your pension.

You do have the option of paying these later. This is possible within a limitation period of 5 years.

In addition, the exemption may also have an impact on the bridging allowance. One of the conditions stipulates that you must have actually paid for at least four quarters during the past 16 quarters, counting from the quarter of termination. Exempted quarters, however, are not taken into account.

Finally, the VAPZ contribution paid is not tax-deductible in the year in which you also received an exemption for one or more quarters.

If you have other questions regarding the Corona crisis, please visit our special FAQ

Last update: 30/04/2020

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Bert Lutin
Bert Lutin
Partner Tax & Legal Services