On 20 May 2020, the Financial and Budgetary Committee of Belgium's parliament adopted a draft bill on urgent tax measures due to the COVID-19 pandemic. Measures of the bill include that donations in kind to combat the pandemic will be tax-deductible and that subsidies granted by communities and regions to support companies and individuals are tax exempt.
Measures are also included to adjust the advance payment surcharge credit for timely payment that may be used by taxpayers to offset the surcharge imposed when the final tax assessment exceeds the advance tax payments made. This includes that for the third and fourth quarters of the accounting year, the surcharge credit will be multiplied by 2.25 and 1.75 times the reference rate, respectively. The benefit is not available for companies that buy back their own shares or reduce capital, or that pay or allocate dividends, subject to certain other conditions.
Lastly, the deadlines for expenses to be incurred for tax shelter incentive for the film industry are extended by 12 months for production companies that have suffered direct damage as a result of measures implemented by the federal government in the context of the COVID-19 pandemic.
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