Activities shut down due to COVID-19? Request a property tax reduction.
23/02/2021

A proportional reduction in Flemish property tax may be available to companies that have experienced a significant drop in productivity (Art. 2.1.5.0.2 Flemish Tax Code in conjunction with Art. 15 Federal Income Tax Code). A similar proportional reduction is also available for real estate located in the Walloon Region (Art. 257 (4) Federal Income Tax Code). These provisions predate Covid-19 but have become increasingly relevant as a result of the pandemic.  

The reduction is proportionate to the time the property (i.e. buildings or machinery and equipment) was unproductive or inactive. In order to obtain the proportional reduction in property tax, an application must be submitted to the Flemish Tax Service by 31 March 2021. For the Walloon Region, the request must be submitted within six months and three days from the mailing date of the tax assessment.

The reduction is available if four cumulative conditions are met:

1. The period of inactivity or unproductivity must have lasted for at least 90 days (180 days for buildings in the Walloon Region). These 90 (or 180) days need not be consecutive and can be spread out over an entire calendar year (representing inactivity for at least 25% of the calendar year, except for seasonal activities for which the period of inactivity may be assessed based on the usual duration of the activity). 

2.The property must not have been used or generated any income during this 90-day (or 180-day) period. For machinery and equipment, partial non-use is sufficient (representing at least 25% of the cadastral income). 

3.The property must not be furnished. Please note that the stringency with which this condition is applied will depend on the nature of the property. 

4.The inactivity/unproductivity must be involuntary (for buildings, not required for machinery and equipment).

As this is a fact-based assessment, it will be necessary to submit sufficient and precise proof of inactivity/unproductivity. 

Related : NautaDutilh ( Ms. Stefanie Hardy ,  Mr. Daan Verhaegen ,  Ms. Jennifer Goovaerts )

[+ http://www.nautadutilh.com]

Ms. Stefanie Hardy Ms. Stefanie Hardy
Associate
[email protected]
Mr. Daan Verhaegen Mr. Daan Verhaegen
Senior Associate
[email protected]
Ms. Jennifer Goovaerts Ms. Jennifer Goovaerts
Associate
[email protected]

All articles Corporate tax

Lastest articles Corporate tax

Het lot van liquidatiereserves bij geruisloze fusies en partiële splitsingen: verlies liquidatie...
23/07/2021

Heel wat vennootschappen maken op vandaag gebruik van het regime van de liquidatiereserves. Mits betaling van een liquidat...

Het lot van liquidatiereserves bij geruisloze fusies en partiële splitsingen: verlies liquidatieheffing! Read more

Important update on payments to tax havens for assessment year 2021
06/07/2021

Companies making direct or indirect payments to recipients established in so-called tax havens are required to report thes...

Important update on payments to tax havens for assessment year 2021 Read more

Supreme Court renders milestone ruling on legal certainty protecting taxpayers’ rights
28/06/2021

On 4 June 2021, the Supreme Court (“Hof van Cassatie”/“Cour de cassation”) rendered a&nb...

Read more

Verplichting voor financiële instellingen om in het verleden uit het buitenland gerepatrieerde g...
23/06/2021

De Nationale Bank van België heeft op 8 juni 2021 een circulaire uitgevaardigd die de correcte naleving van de waakza...

Read more

Lastest articles by Ms. Stefanie Hardy

Minimum Remuneration of Company Directors: An Overview
07/01/2019

Since the recent corporate tax reform, SMEs have been able to benefit from a reduced tax rate on their first €100,000...

Read more

Taxation and the Digital Economy: European and International Initiatives to Create a Fair Tax System
22/06/2018

Thanks to digitalisation, businesses such as social media companies, sharing platforms and online content providers are ma...

Read more

Alert on Tax Reform
20/11/2017

In our tax alert of 1 August 2017, we informed you that the Belgian government had announced substantial tax reforms ...

Read more

New Tax Deduction for Income from Innovation
24/03/2017

On 2 February 2017, the House of Representatives adopted a bill providing for a new tax deduction for income from innovati...

Read more

Lastest articles by Mr. Daan Verhaegen

Lastest articles by Ms. Jennifer Goovaerts

LexGO Network