Tax Insights March 2021 - Brussels support premium for non-essential sectors pursuant to COVID-19

The Brussels Region offers support to companies from certain sectors that were obliged to close on November 2, 2020 due to the corona crisis. To be able to claim the premium, certain conditions must be met.

CONDITIONS

In order to be eligible for the Brussels support premium, the company must meet all or certain of the following conditions:

  1. Have at least one active establishment in the Brussels-Capital Region on November 2nd, 2020;
  2. Perform one or more of the listed activities 1 ;
  3. Obliged to close one or more business units in the Brussels-Capital Region on November 2nd, 2020;
  4. Not benefitting from the VAT exemption regime;
  5. Proving a turnover of more than EUR 25.000 in 2019;
  6. Suffered a loss of revenue in the fourth quarter of 2020 compared to the fourth quarter of 2019. 

For companies registered as of 1 January 2019, certain of the above conditions must be assessed on a pro rata basis or some conditions will not be applicable (depending on the specific registration date).

The following sectors are considered: non-food retail, transportation, vacation and other short-stay accommodation, caterers, discotheques, cinemas, real estate agencies, photo and video rental agencies, travel agencies, tour operators, travel agencies, administrative activities, organization of conferences and fairs, driving schools and flying and boating education, creative activities , arts, entertainment, libraries, archives, museums and other cultural activities, lotteries and games of chance, sports, entertainment and recreation, repair, hair and beauty care, services for animals.

AMOUNT OF THE PREMIUM 

In case the fixed costs during the mandatory closing period exceeded EUR 1.000 and

  • a loss of turnover of more than 40% was suffered: a premium of EUR 5.000;
  • a loss of turnover between 25% and 40% was suffered: a premium of EUR 3.000;
  • a loss of turnover of less than 25% was suffered: a premium of EUR 1.000. In case the company was registered between October 1st, 2019 and December 31st, 2019 the premium amounts to EUR 1.500. 

The aforementioned amounts are limited in case a regional premium for contact professions was already granted. 

In case the fixed costs during the mandatory closing period were less than EUR 1.000 and

  • A loss of turnover of more than 40% was suffered: a premium of EUR 4.000;
  • A loss of turnover between 25% and 40% was suffered: a premium of EUR 2.000;
  • A loss of turnover of less than 25% was suffered: no premium, irrespective whether the company already received the regional premium for contact professions. 

The aforementioned amounts are limited in case a regional premium for contact professions was already granted. 

For companies registered between January 1st, 2020 and November 2nd, 2020 the premium amounts to EUR 1.500, if no regional premium for contact professions was granted. 

Schematic:

Date of registration CBE

Fixed costs

Loss of turnover

Regional premium contact professions received?

No Yes

Before 1/1/2019

> 1.000 EUR

+ 40%

€ 5.000

€ 3.500

 

 

25% - 40%

€ 3.000

€ 1.500

 

 

< 25%

€ 1.000

€ 0

 

< 1.000 EUR

+ 40%

€ 4.000

€ 2.500

 

 

25% - 40%

€ 2.000

€ 500

 

 

< 25%

€ 0

€ 0

1/1/2019 – 30/9/2019

> 1.000 EUR

+ 40%

€ 5.000

€ 3.500

 

 

25% - 40%

€ 3.000

€ 1.500

 

 

< 25%

€ 1.000

€ 0

 

< 1.000 EUR

+ 40%

€ 4.000

€ 2.500

 

 

25% - 40%

€ 2.000

€ 500

 

 

< 25%

€ 0

€ 0

1/10/2019 – 31/12/2019

> 1.000 EUR

+ 40%

€ 5.000

€ 3.500

 

 

25% - 40%

€ 3.000

€ 1.500

 

 

< 25%

€ 1.500

€ 0

 

< 1.000 EUR

+ 40%

€ 4.000

€ 2.500

 

 

25% - 40%

€ 2.000

€ 500

 

 

< 25%

€ 0

€ 0

1/1/2020 – 2/11/2020

€ 1.500

€ 0

 

The loss of turnover is determined based on the VAT returns related to the fourth quarter of 2020 compared to the VAT returns for the fourth quarter of 2019. Only the VAT returns submitted within due time for Q4 2020 are considered.

Companies that do not comply or did not comply with the obligation to shut down and the obligation to comply with the rules to limit the spread of the virus, cannot claim this measure. 

PROCEDURE

The application must be submitted electronically by March 25th, 2021 at the latest. 

If you would like to receive additional information on this matter, the Tax team of RSM Belgium is at your disposal ([email protected]). 

RSM Intertax

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