2. Automatic deferral for Wage Withholding Tax
For Wage Withholding Tax, the payment periods have automatically been postponed as follows:
- Relating to monthly return for February 2020: payment postponed to, at the latest, 13 May 2020; and
- Relating to monthly return for March 2020: payment postponed to, at the latest, 15 June 2020.
- Relating to monthly return for April 2020: payment postponed to, at the latest, 15 July 2020.
- Relating to quarterly return for Q1/202: payment postponed to, at the latest, 15 June 2020.
In order to benefit from this measure, the taxpayer does not have to take any action, since the deferral of the payment deadline is automatically granted. No late-payment interest and/or tax increases are due in case of an extended payment period.
3. Payment relief available upon request
Furthermore, the Belgian tax authorities have announced support measures for companies experiencing temporary financial difficulties due to the Corona outbreak.
Taxpayers may request for:
- payment of taxes in several instalments;
- waiver of interest for late payment; and
- discount on fines.
These measures are only available to companies that introduce a request to the Belgian tax authorities and demonstrate that they are experiencing financial difficulties. Furthermore, these measures can only apply insofar the tax returns relating to these tax debts have been duly submitted and to the extent that these tax debts do not result from tax fraud. Moreover, these measures are revoked in the event of non-compliance with the extended repayment schedule (except if the debtor approaches the Belgian tax authorities in due time) or in the event of collective insolvency proceedings (bankruptcy or judicial reorganisation).
The Belgian tax authorities prepared a specific form that must be used for the submission of the request. One request must be submitted for each tax debt. Further guidelines (address, modalities,…) can be found on the website of the Belgian tax authorities (see link above).
To benefit from these measures, the taxpayer must submit such form after reception of an assessment note or a payment request and at the latest by 30 June 2020. The granting or refusal of the application of these measures shall be notified within 30 days of submission of the request.
If you have any questions on this subject, please contact the authors of this article.