Mazars Info April 2021

CORPORATE INCOME TAX

Belgian corporate income tax and local form FY20 due date published

Further to the Law of January 26, 2021, as from assessment year 2021, the corporate income tax returns and non-resident income tax returns should be filed within 7 months after the end of the financial year.

This regulation applies to both companies with a fiscal year ending on December 31 as well as companies with a so-called broken fiscal year. However, due to the COVID-19 crisis, the tax authorities have granted a filing extension until 28 October 2021 to companies with a financial year ending between 31 December 2020 and 28 February 2021. This extension also applies to the filing of the local form ‘275 LF’ as the local form should be filed within the same due date as the Belgian (non-resident) corporate income tax return.

For companies with a fiscal year ending between March 1, 2021 and December 30, 2021, the due dates are published on https://financien.belgium.be/nl/E-services/biztax/indieningstermijnen-aangiften.

LEGAL

Reform of insolvency law

On 26 March 2021, the Act of 21 March 2021 to amend Book XX of the Economic Code and the Income Tax Code 1992 was published in the Belgian Official Gazette.

This reform comes in response to the Covid19 pandemic and aims to avoid a bankruptcy wave. Two temporary moratoria have already been granted, the last of which expired on 31 January 2021. The period between the expiry of this last moratorium and the new measures is bridged with an unofficial moratorium, i.e. a reluctant attitude on the part of the government to sue in bankruptcy.

In addition to a number of smaller measures, three measures stand out. They mainly aim to facilitate access to judicial reorganisation for small and medium-sized enterprises.

Lowering the threshold for judicial reorganisation

The obligation to immediately file certain documents together with the petition for judicial reorganisation will henceforth be more flexible. Documents such as an internal balance sheet and a cash flow plan can be added later or not at all.

Pre-packaged insolvency

The purpose of this pre-packaged agreement is to confidentially test the possibility of reaching an agreement with one or more creditors in preparation of a formal insolvency procedure (amicable or collective agreement). A court representative will conduct negotiations with the creditor(s) together with the debtor and, in the meantime, the court can impose facilities such as a suspension of payment of certain debts. Once an amicable or collective agreement is within reach, a smooth transition to a formal judicial reorganisation is possible, given the preparatory work already done.

Eliminating tax disparities

The Income Tax Code 1992 was amended to eliminate tax disparities between three types of judicial reorganisation. Now, the write-downs and provisions on receivables from co-contractors for which a reorganisation plan has been approved or an amicable agreement has been established are also exempted during the taxable periods until the plan or the amicable agreement have been executed or until the conclusion of the procedure.

Most of the new measures come into force on the day of their publication in the Belgian Official Gazette. A significant number of the new measures already end on 30 June 2021, but this period may be extended by Royal Decree.

CORPORATE INCOME TAX

New bill introducing miscellaneous tax measures

A new bill introducing various tax measures is in course of preparation. In the field of corporate income tax, the following changes must be noted:

• The opportunity has been taken to clarify that no notional interest deduction can be claimed when the rate stipulated in art. 205quater of the Belgian Income Tax Code (“BITC”) is negative, which is the case for assessment year 2021 (-0.092%). Small companies, however, can still claim the notional interest deduction as the base rate increased with 0.5% would still be positive (0.408%).
• Based on the current article 315 BITC, a taxpayer is obliged to present to the Belgian tax administration, at its request and without displacement, all books and records necessary to determine the amount of taxable income. However, going forward, where the books and records are available digitally, the taxpayer can be requested to make these documents available through a secure electronic platform.
• To date, the taxpayer has the possibility to receive notices of assessment digitally. The bill now provides that the taxpayer will have the possibility to receive all communication concerning tax return and tax audits digitally (e.g. notice of amendment).
• The bill expands the current form 281.10/281.20 reporting requirement. Based on the current article 57, 3° BITC, when lump-sum expense allowances, covering costs proper to the employer, are being granted to employees or company directors and can be considered to meet “serious standards”, the salary slips only need to mention these allowances are being granted. The Belgian tax administration had already announced that, starting fiscal year 2022, the full amount paid will need to be mentioned on the salary slips. The new bill provides that, as from income year 2022, also the full amount of remunerations of costs proper to the employer (variable expense allowances), based on expense notes submitted by employees or company directors, will have to be reported on the forms 281.10 and 281.20. Based on the current legislation, failure to report lump-sum allowances automatically results in the cost not being deductible for income tax purposes and/or the levy of the secret commission tax. However, this will not be the case for variable expense allowances. Failure to report may however result in an administrative fine.
• Under the current article 219, par 6 BITC, the secret commission tax may not be levied when the beneficiary of the remunerations and benefits in kind that have not been reported on the appropriate forms, has properly disclosed these remunerations on a timely filed income tax return or when the beneficiary has been identified within 2 years and 6 months after January 1st of the relevant assessment year. The bill now adds that the secret commission tax should also not be levied when the beneficiary has been effectively taxed on the received benefit or remuneration within the regular or extended statute of limitation.
• As part of the measures taken due to the circumstances caused by Covid-19, meal and eco vouchers that expired and where not extended in 2020 can be reissued with an expiration period of 12 months for meal vouchers and 24 moths for eco vouchers. The bill now confirms that this re-issuance has no impact on the fiscal deductibility of these social benefits.

KEEP IN MIND THE DEADLINE !

VAT

• VAT return March 2021 / Q1 2021 : before April 20, 2021

Corporate income tax

• Prepayment corporate income tax : April 10, 2021
• Forms 281.50 (calendar year 2020) : June 29, 2021

Personal income tax

• Prepayment individual income tax: before April 12, 2021

Payroll

• Wage withholding tax return (Q1/2021 or 03/2021): before April 15, 2021
• French RAS return (Q1/2021) : before April 15, 2021
• Social security return (Q1/2021) : before April 30, 2021