Belgium has published Circular 2020/C/122 regarding guidance on the application of the loss carryback provisions for companies and individual entrepreneurs due to the Covid-19 outbreak.
To claim the relief, companies are required to comply with Form 275 COV along with their income tax return. Companies that have already submitted their income tax return are still allowed to submit Form 275 COV by 30 November 2020 to claim the relief.
The Circular also provides the guidance of penalty (surtax) calculation in the case of loss carryback reserve has been overestimated. According to the guidance penalty rate may vary 2% to 40%.
