In the framework of the Economic recovery plan -see our HRS headline of 17 February 2009 (1)- the Belgian Federal Government has adopted measures in order to soften the cash flow shortage caused by the current economic and financial crisis.

In this period in which companies are often searching for cash, the law for economic recovery (voted by the Chamber and the Senate but still to be published to be enacted) foresees a specific measure to allow companies to postpone part of the payment of wage withholding tax for 3 months, as the tax authorities announced today (2).

Withholding tax withheld on remuneration paid or attributed during the months March 2009 to August 2009 inclusive (for companies depositing on a monthly basis), or during the first and second quarters of 2009 (for companies depositing on a quarterly basis), may be remitted to the tax authorities within 15 days following the end of the third month after the month during which the remunerations were paid or attributed.

The extended payment deadline of 3 months per withholding tax filing period is automatically granted and is not subject to late payment interest. Companies are not required to claim for it, and the use of this extended payment deadline is optional.

Please note however that this does not modify the reporting deadlines to be complied with.

In addition to this extended deadline, other wage withholding tax measures are available, however for other periods, and must be claimed explicitly and are subject to conditions.

(1) Economic recovery plan – Bill of Law
(2) Communication from the tax authorities:
FR: Plan de relance – Précompte professionel
NL: Relanceplan – Bedrijfsvoorheffing