Belgium has published guidance to clarify the application of certain support measures introduced by the Law of 15 July on urgent tax measures due to the COVID-19 pandemic, which was published in the Official Gazette on 23 July 2020.
One of the main measures is a temporary increase in the standard investment deduction (déduction pour investissement - DPI) rate to 25%. A notice dated 7 August 2020 clarifies:
For this purpose, the required form for the DPI has been updated and taxpayers are allowed to amend returns already submitted to account for the impact of the DPI support measure.
Another important measure is a 50% exemption for the payment of wage tax withheld. A circular dated 6 August 2020 clarifies the application of the exemption, including the following key points:
Further to the above, it is provided that certain companies are excluded from the exemption benefit, including those that distribute dividends or buy back own shares during the period 12 March to 31 December 2020 and those that hold a direct interest in a company established in a tax haven or make payments of at least EUR 100,000 to companies established in a tax haven without proof of real economic purpose.