Here are the coronavirus measures that matter for every self-employed end of 2020
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You may be wondering whether the federal government or your regional government has recently decided on a measure that can help you through this coronavirus crisis. You also suspect, and rightly so, that your accounting and tax obligations are still around the corner. We list here what is changing for you and what you should take into account between now and the end of 2020!
The so-called “bridging right” and the regional indemnities are less widely available now than they were in the spring. However, some support measures are available to all the self-employed professionals affected by this ongoing crisis.
If you face difficulties paying your withholding tax, your VAT, or income tax as a result of the coronavirus crisis, you can apply for support measures from the Ministry of Finance until the end of December 2020. These measures include a payment plan, exemption from penalties for late payment, and the remission of fines for non-payment. You will find the details of the steps to be taken here. Unfortunately, this content is not available in English.
Are you still entitled to the “bridging right” and/or regional allowances?
If you are part of a sector that is obliged to close (e.g. artistic, cultural, festive, etc.) or are completely dependent on one of these sectors, you can benefit from a partial or complete bridging right until 31 December (and more until the end of October). Moreover, the amount of this indemnity is doubled.
The indemnity allocated to support the restart of your activity is extended to December 31: to benefit from it, you must demonstrate that your activity for the quarter has decreased by at least 10% in sales or orders compared to the same quarter in 2019. In this case, you work in a sector that has had to close down totally or partially for more than a month.
⚠️ If you have interrupted your activity for more than 7 consecutive days per month without being obliged to do so by the government, you are no longer entitled to the bridging right.
HoReCa companies (Nacebel 56.101, 56.102, 56.301, 56.309) receive regional support according to the number of full-time employees in the company: 3000 euros if the number of FTEs is 0, 5000 euros from 1 to 4, 7000 euros from 5 to 9, and 9000 euros beyond that.
The self-employed in the sectors at a standstill (photography, cab, travel, etc.) receive more generous support than what was announced in September: they receive an intervention equivalent to 30% of their 3rd quarter turnover if they demonstrate a 60% drop in their 3rd quarter turnover in 2020, compared to 2019. In addition, the minimum intervention amount increases to 3,000 euros, instead of 1,500 euros. Self-employed professionals with one of the following Nacebel codes are eligible: 49310, 49,320, 49390, 56210, 56302, 59140, 74109, 74201, 74209, 77293, 77294, 77296, 77392, 79… , 82300, 90… , 93211, 93,299.
📌 You will find the details of the measures in this press release.
Flanders has announced that an entrepreneur who would lose 60% of his turnover between October 1 and November 15, 2020, compared to the same period in 2019, would receive an indemnity equivalent to 10% of his turnover for the same period in 2019.
📌 You can follow these measures (still developing) here
What is the impact of regional & federal measures on your taxes in 2021?
The regional indemnities are exonerated from taxes in 2021. If you are a natural person, you will see it mentioned in your tax slip, don’t be surprised!
The bridging fee is a replacement income: it is therefore taxable. If you have benefited from the bridging benefit, you will receive a form 281.18 to take into account in your tax return for the year 2020, which you will fill out in 2021. However, it is not taken into account in the calculation of your social security contributions!
There will be no advance payment for VAT in December 2020.
In December 2020, exceptionally, you won’t have to pay a mandatory VAT advance payment. If you file quarterly VAT returns, you do not have to make any further payments or declarations in 2020!
You should still make your advance payment on taxes
If you have to make advance tax payments, do not forget the last installment for 2020. The percentage that applies for the 4th installment is higher than in other years: this is the result of an April decision to ease the burden on businesses that were facing a cash crunch at the start of the crisis.
If you are not in one of your first three years of business, you risk a penalty if you do not make these advance payments.