Short Reads

What are the tax consequences of the coronavirus with regard to telework?

What are the tax consequences of the coronavirus with regard to telewo

What are the tax consequences of the coronavirus with regard to telework?

19.03.2020 BE law

The impact of the coronavirus is strongly felt in tax matters. The Ruling Commission has set up an accelerated procedure for the ruling requests concerning the lump sum expense allowances with regard to telework.

When an employee works from home, the employer may grant the employee a lump sum expense allowance to cover his or her home office costs, such as electricity, central heating, office supplies, print costs, insurance, etc.

When all relevant conditions are fulfilled, these lump sum expense allowances are exempt from taxes and social security contributions in the hands of the employee, and are (partly or fully) tax deductible in the hands of the employer.

In order to obtain certainty about the tax treatment of these allowances, the taxpayer may apply for an advance tax ruling with the Belgian Ruling Commission.

Due to the substantial increase in telework because of the spread of the coronavirus, the Ruling Commission has installed a swift procedure for the ruling requests concerning the lump sum expense allowances for home office costs. Since considerably more employees are currently working remotely due to the corona-measures issued by the federal government, more employers will grant the (maximum) home office allowance to their employees. The Ruling Commission acknowledges the reality of the current business needs and anticipated the increasing number of ruling requests with regard to the home office allowances. As such, an 'express Corona home working ruling' can be obtained through a swift procedure, allowing a lump sum expense allowance of 126,94 EUR per month per homeworking employee (without the need to categorize the employees). This swift ruling procedure may therefore be of interest to enterprises wishing to obtain legal certainty as to the tax-advantageous home office allowances they grant or may grant in the near future. Enterprises that already dispose of a ruling with regard to the  lump sum expense allowances can also apply for a new ruling in order to raise the allowance to 126,94 EUR per month for all categories of currently homeworking employees. However, it should be noted that the lump sum expense allowance approved by such a ruling may be granted as long as the coronavirus measures of the National Security Council are in force. The ruling would therefore be valid for as long as the coronavirus measures are in force (as opposed to the usual validity of 5 years).

For more information on how to cope with the impact and consequences of the coronavirus relating to your company, please contact one of our specialists.

 

This article provides some general insights on different legal questions. These insights do not constitute legal advice and may not be relied upon as if they were legal advice. The outcome of any legal analysis will strongly depend both on the specific facts and circumstances of each case and on the particularities of the sector and legal relationship involved. Our legal experts in the various domains concerned are available to assist you with the analysis of your questions and provide specific advice tailored to your case and circumstances.

Team

Related news

08.07.2020 NL law
COVID-19 update and Guidelines published on the Dutch implementation of DAC6

Short Reads - The EU Mandatory Disclosure Directive (“DAC6”), introducing a reporting requirement for intermediaries and/or taxpayers of certain cross-border arrangements that are perceived to be aggressive, is effective as of 1 July in the Netherlands. By his letter of 26 June 2020, the Dutch State Secretary of Finance granted deferral of the Dutch reporting deadlines until 1 January 2021.

Read more

03.07.2020 NL law
E-book NOW-2: Second Temporary Emergency Bridging Measure Work Retention

Articles - On 17 March 2020, the Dutch cabinet announced the first emergency package of support measures to alleviate the economic consequences of the corona crisis. This emergency package inter alia comprised the First Temporary Emergency Bridging Measure for the purpose of Work Retention (“NOW-1”) and the Temporary Bridging Measure for Self-Employed Persons (“Tozo-1”).

Read more

07.07.2020 NL law
Mandatory disclosure-verplichtingen voor grensoverschrijdende constructies (‘DAC6’)

Short Reads - Per 1 juli 2020 zijn intermediairs (en in sommige gevallen belastingplichtigen) gehouden om bepaalde potentieel fiscaal agressieve grensoverschrijdende constructies te melden bij de fiscale autoriteiten. Deze verplichting vloeit voort uit de Nederlandse implementatie van de EU-richtlijn inzake ‘mandatory disclosure’ (hierna: “DAC6”). Met DAC6 beoogt de Europese Commissie de internationale fiscale transparantie te bevorderen en ongewenste fiscale praktijken tegen te gaan.

Read more

03.07.2020 NL law
E-book NOW-2: Tweede tijdelijke noodmaatregel overbrugging voor behoud van werkgelegenheid

Articles - Op 17 maart 2020 kondigde het kabinet het eerste noodpakket aan met steunmaatregelen om de economische gevolgen van de coronacrisis te dempen. Onderdeel van dit noodpakket zijn onder andere de Eerste tijdelijke noodmaatregel overbrugging voor behoud van werkgelegenheid (“NOW-1”) en de Tijdelijke overbruggingsregeling zelfstandige ondernemers (“Tozo-1”).

Read more

07.07.2020 NL law
Inwerkingtreding Tijdelijke Wet COVID-19 Justitie & Veiligheid

Short Reads - Op 24 april 2020 is de Tijdelijke Wet COVID-19 Justitie & Veiligheid (“de Noodwet”) in werking getreden. Aan de hand van de Noodwet kunnen rechtspersonen tijdelijk afwijken van wettelijke en statutaire bepalingen en kunnen bepaalde termijnen worden uitgesteld. De Noodwet is een antwoord op de beperkingen die gelden als gevolg van de uitbraak van COVID-19. De Tijdelijke wet COVID-19 Justitie en Veiligheid is een verzamelwet.

Read more

25.06.2020 NL law
Een groene encyclopedie voor de financiële sector

Short Reads - Op 22 juni 2020 is de Europese taxonomieverordening (Verordening (EU) 2020/282) gepubliceerd. De verordening wordt gezien als een mijlpaal voor de verduurzaming van de financiële sector. De Europese Commissie ziet het herstel en de wederopbouw van de economie na de coronacrisis als een kans voor een fundamentele verandering naar een duurzame economie.

Read more