Extension of the economic and social measures for companies taken in Belgium due to Covid-19

Belgian Government approves new socio-economic measures

Last Saturday, April 11, the Inner Cabinet, extended to include the representatives of the ten parties met in a virtual meeting to approve a serie of decrees with socio-economic measures in addition to those already approved to combat the effects of the coronavirus.

Details of the additional measures:

  • Withholdings for the professional income tax and VAT due in April are deferred and can be paid until July 15 and 20.
  • The introduction of a temporary moratorium on Company bankruptcies. During this difficult period, any Company that is struggling to pay off its debts as a result of covid-19, is protected from pre-judgment attachment and executive attachment, bankruptcy and court-ordered dissolution. In additios, the payment terms that are included in a reorganisation plan, will be extended. And agreements concluded before the entry into forcé of the royal decree cannot be unilaterally or judicially disolved.
  • Tax exemption for voluntary overtime (220 hours) in the so-called critical sectors until 30 June 2020.
  • Possibility for the temporarily unemployed to work temporarily in a flexible way and without loss of income in the horticultural and forestry sector.
  • An easing of flexible working hours, secondment and temporary work in order to facilitate making permanent employeed of other companies available to employers in “critical” industries.
  • The possibility of shor successive contracts of fixed duration in critical sectors for a period of three months.
  • Freezing the degressive nature of unemployment benefits during the crisis period.
  • Confirmation of a bridging right for people who are “typical” self-employed as their secondary occupation in the case of self-employed persons, paying the máximum contribution; “adapted” for certain self-employed as their secondary ocuppation (with and income between 6996.89€ and 13993.78€) and active pensioners (income >6996.89€) who are forced to interrupt their activities by Covid-19.

Source: Belgium.be