In 2021, corona again forced many businesses to close their doors. Hairdressers, catering establishments, sports clubs, etc. were closed for months at a time. But just like last year, this year you can again submit an application for a reduction in the property tax, depending on the number of days of unproductive work. We are pleased to give you an overview of the conditions and how exactly you should submit this application.
When is there "unproductivity"?
A property tax reduction can be requested when a property has been "involuntarily unproductive" for a certain period of time.
The property tax (OV) is always due on January 1st for the coming year. If, therefore, changes occur during the current year, (part of) the incorrectly claimed real estate tax must be reclaimed from the competent authority by means of a reasoned objection.
One of the changes that can occur is the property becoming unproductive and this beyond the control of the owner of the building in question. In principle, this condition is met when an enterprise is forced to close its doors because of the corona measures. Importantly, however, this application is only possible if the building is located in the Flemish or Walloon region. This possibility does not exist for real estate located in Brussels.
What are the conditions for being entitled to a reduction?
To qualify for this proportional reduction, a number of conditions must be met. For example, the building must have been unwillingly unproductive for a minimum period of 90 days (Flanders) or 180 days (Wallonia), during which no income could be generated. These days of improductivity do not necessarily have to be consecutive. Also days of improvisation for a reason other than compulsory closure may be counted (e.g. in the event of demolition, reconstruction, signing, etc.).
In addition, it must be a built property that is not furnished. However, an exception is made for machines, installations and other movable property that show a direct link with the operation, such as furniture in a restaurant, the interior of a hairdressing salon, etc. Immovable goods that are used both professionally and for residential purposes are not eligible.
Example: Hairdressers
| Mandatory closure | Number of days |
| 01/01/2021 to 12/02/2021 | 42 days |
| 27/02/2021 up to and including 25/04/2021 | 57 days |
Since both periods together amount to 99 days, the minimum period as applicable in the Flemish Region is thus met. Consequently, a proportional reduction can be requested in the amount of 99/365sten.
How to apply.
For the Flemish Region, a request for proportional reduction must be submitted to the Flemish Tax Administration before March 31, 2022. It is important to note that you must first pay the property tax before you can request the proportional reduction. In the Walloon Region, a request must be submitted to the SPW Fiscalité within 6 months of the 3thworking day following the date on which the assessment notice was sent.
Need our help?
Last year, several of our business owners filed a request for proportional reduction of OV and with success!
Do you think your situation could also qualify for this reduction in 2021? Then be sure to check how many days your company was actually closed on a mandatory/unmandatory basis and whether no activity was carried out. If all the conditions are met, you can apply for the reduction yourself using our standard application.
Do you think you qualify for this and would you like help with your application? We will gladly help you! Contact us here.
Need another overview of all the latest corona measures? You can find that here.
