The circular deals specifically with the tax treatment of the financial assistance of affiliated reception parents (including the family and group reception concerned which also offer extracurricular care).
Under the current scheme, the affiliated reception parent receives a reimbursement of expenses from the organiser of the affiliated reception parents for each day that he/she receives a child. This reimbursement per effective reception day and per child is not a taxable professional income for the receiving parent and is therefore tax exempt. This reimbursement is considered to represent only the expenses for maintenance, feeding and treatment of the children.
Organisers of child care are currently confronted by COVID-19 with an extreme drop in performance and with the non-payment of families for absences. The decision of the Flemish Government therefore foresees a temporary financial compensation (subsidy) for childcare organizers. According to this decree, the organisers working with reception parents in the social status of the affiliated reception parents have to meet a number of strict conditions in order to be eligible for the subsidy.
One of these conditions is that they must pay an allowance to the reception parents of EUR 17.50 for each full day of absence of the child. This so-called reimbursement of costs is therefore granted as compensation for the days of absence. The allowances that the host parents receive from the organiser are, in principle, non-taxable reimbursements of expenses, provided that they are actually provided with care. Reimbursements granted to host parents for days of absence are in principle considered as taxable professional income. However, where an allowance of EUR 17.50 per full day of absence is granted to the host parents under the conditions and circumstances set out in the decree, it is exceptionally accepted that this allowance is not a taxable professional income in the case of child care workers.
This provision applies to the allowances for days of absence falling during the period in which the measures in the fight against the COVID-19 virus apply, i.e. from 14.03.2020 at the earliest and until the end date set by the government.
Finally, with regard to independent childcare, the collective agreement on professional costs with the sector includes a provision stating that the condition of presence of the child does not apply during the period of application of the measures to combat COVID-19, i.e. from 14 March 2020 at the earliest and until the end date set by the government. As a result of this provision, the global cost factor of 19 euros per babysitting day per child and the limited cost factor of 8 euros per babysitting day per child during the COVID-19 period can still be applied, notwithstanding the absence of the child.
Last update: 30/04/2020