More details on the temporary tax aid measure

During the summer of 2020, a new tax aid measure was introduced in the form of a temporary exemption from the payment of withholding tax for the months of June, July and August 2020. In a recent circular, the FPS Finance gives more details on this aid measure.

For which employers?

Only employers who have made use of the temporary unemployment scheme for an uninterrupted period of at least 30 calendar days between 12 March 2020 and 31 May 2020, both dates included, can benefit from the exemption.

Uninterrupted period of at least 30 calendar days

An uninterrupted period of at least 30 calendar days is a period of 30 consecutive days, Saturdays, Sundays and public holidays included. When a public holiday is replaced, the period of 30 calendar days under the temporary unemployment scheme is not interrupted by the replacement public holiday.

Temporary unemployment schemes

All temporary unemployment schemes are eligible (temporary unemployment due to force majeure, economic reasons, bad weather, technical disorder, etc.).

In order to be regarded as an employer who has made use of the temporary unemployment scheme, it is necessary, but sufficient, that at least one employee of the enterprise has been temporarily unemployed for an uninterrupted period of 30 calendar days, without this necessarily being the same person.

Combination of the 5-day system and the 6-day system

For enterprises which employ employees in a 5-day system (e.g. Monday to Friday) and a 6-day system (e.g. Monday to Saturday), it is sufficient for at least one employee in the 5-day system to have been placed in the temporary unemployment scheme for a period of 30 calendar days during the period from 12 March 2020 to 31 May 2020, both dates included. In that case, the enterprise shall be deemed to have benefited from the temporary unemployment scheme for an uninterrupted period of at least 30 calendar days.

Collective closure of the enterprise

If, during the period of temporary unemployment, there is a collective closure of the enterprise, these collective closure days do not interrupt the period of 30 calendar days under the temporary unemployment scheme.

Individual leave days

However, individual days of leave interrupt the period of 30 calendar days under the temporary unemployment scheme.

Days of work-time reduction (WTR)

WTR days do not interrupt the period of 30 calendar days under the temporary unemployment scheme.

It should be noted that the FPS Finance only gives an example in which the WTR day falls on the same day for all the employees of the enterprise. It is unclear whether the FPS Finance also considers that the period of 30 calendar days under the temporary unemployment scheme is not interrupted if the WTR days can be chosen individually by each employee.

Excluded employers

Certain companies are excluded from the exemption. In particular, companies which, during the period from 12 March 2020 to 31 December 2020, have carried out a purchase of their own shares, a grant or distribution of dividends, a capital reduction or any other reduction or distribution of own capital cannot benefit from the aid measure.

Profit premiums and “tantièmes”

The use of the profits of the financial year (i.e. without affecting own capital) for the payment of profit premiums does not constitute an obstacle to the granting of the exemption.

The assessment whether the granting of “tantièmes” should be reclassified as a distribution of dividends must be made for each case individually on the basis of the factual circumstances (in particular the case where the manager-beneficiary is also a shareholder or partner of the company).

Customer of Partena Professional?

If you made use of the temporary unemployment scheme during the months of March to May 2020, you were invited via a mailing to check whether you meet the conditions. If you were eligible, you have submitted a completed statement to your Payroll Consultant.

You can still provide this statement to your Payroll Consultant if you still meet the conditions to benefit from the exemption.

If you still have legal questions about the exemption, please contact our Legal Partners via legalpartners@partena.be or via 02/549.30.20.

Source: Circular 2020/C/135 on the temporary exemption from the payment of withholding tax due to the COVID-19 pandemic - introduction of a specific measure for employers who have made use of the temporary unemployment scheme - FAQ.