Most recent news

OECD publishes comments on TP Comparability Data and Developing Countries paper

On 11 March 2014, the OECD invited comments from interested parties on the paper on Transfer Pricing Comparability Data and Developing Countries. This paper discusses four possible approaches to addressing … more

Isabel Verlinden

On 11 March 2014, the OECD invited comments from interested parties on the paper on Transfer Pricing Comparability Data and Developing Countries. This paper discusses four possible approaches to addressing … more

Exposure Draft: Recognition of DTA for Unrealised Losses (IFRS)

The IASB has proposed amendments to IAS 12 on deferred tax asset recognition for debt instruments measured at fair value. The exposure draft also suggests a new illustrative example. The comment period ends o … more

koen-de-grave-author

The IASB has proposed amendments to IAS 12 on deferred tax asset recognition for debt instruments measured at fair value. The exposure draft also suggests a new illustrative example. The comment period ends o … more

ESMA publishes updated Q&A on Prospectus issues

On 22 October 2014, the European Securities and Markets Authority (ESMA) published an updated version of its Q&A on Prospectus issues related the Prospectus Directive 20 … more

olivier-hermand-author

On 22 October 2014, the European Securities and Markets Authority (ESMA) published an updated version of its Q&A on Prospectus issues related the Prospectus Directive 20 … more

Net Asset Tax – Foreign Collective Investment Undertakings

The European Commission has announced yesterday its intention to refer Belgium to the EU Court of Justice in relation to the discriminatory taxation of foreign Collective Investment Undertakings</str … more

Patrice Delacroix

The European Commission has announced yesterday its intention to refer Belgium to the EU Court of Justice in relation to the discriminatory taxation of foreign Collective Investment Undertakings</str … more

New liability of inter-municipal organisations to corporate income tax as from 2015

After several proposals already during its previous terms of office, the new Federal Government has approved the liability of inter-municipal organisations to corporate income tax as from 1st January 2015. Ac … more

Patrice Delacroix

After several proposals already during its previous terms of office, the new Federal Government has approved the liability of inter-municipal organisations to corporate income tax as from 1st January 2015. Ac … more

R&D tax benefits: only limited time to take action

Several measures have been taken to stimulate investments in R&D. One of these measures is the partial exemption of remittance of Belgian withholding taxes in the framework of research and development. As … more

Nicolas de Limbourg

Several measures have been taken to stimulate investments in R&D. One of these measures is the partial exemption of remittance of Belgian withholding taxes in the framework of research and development. As … more

Tech tools provided by employers – new tax and social security treatment

The social security authorities are currently working on a new measure with respect to the valuation of the benefit in kind for private use of a PC, tablet, mobile phone and internet provided by employers to … more

Nicolas de Limbourg

The social security authorities are currently working on a new measure with respect to the valuation of the benefit in kind for private use of a PC, tablet, mobile phone and internet provided by employers to … more

Global Tax Accounting Services Newsletter (July – September 2014)

In this release we provide an update on a variety of accounting and reporting developments, including: an update on the income tax accounting topics added to the Financial Accounting Standards Board’s agenda amendments proposed to the International Accounting Standard 12 Income Taxes recent International Financial Reporting Standards Interpretation Committee’s guidance on some tax-related matters, and […]

koen-de-grave-author

In this release we provide an update on a variety of accounting and reporting developments, including: an update on the income tax accounting topics added to the Financial Accounting Standards Board’s agenda amendments proposed to the International Accounting Standard 12 Income Taxes recent International Financial Reporting Standards Interpretation Committee’s guidance on some tax-related matters, and […]

Existing split sale structures: ruling commission confirms possibility of re-constitution of full property

The ruling commission held a meeting a few days ago with the central tax administration to discuss the unwinding of existing split sale structures and to agree on a position regarding the potential reconstit … more

Gregory Jurion

The ruling commission held a meeting a few days ago with the central tax administration to discuss the unwinding of existing split sale structures and to agree on a position regarding the potential reconstit … more

Impact of announced tax measures on Transfer Pricing

As previously announced, a number of new tax measures has been announced in the framework of the Belgian government formation and the budget for 2015. Some of these will also have an impact on transfer pricing: The plan is to invest heavily in data mining tools for case selection purposes. These are likely to be used for […]

Patrick Boone

As previously announced, a number of new tax measures has been announced in the framework of the Belgian government formation and the budget for 2015. Some of these will also have an impact on transfer pricing: The plan is to invest heavily in data mining tools for case selection purposes. These are likely to be used for […]

Tax on conversion of bearer stocks – Infringement of EU Law

On 9 October 2014, the Court of Justice of the European Union (below ‘CJEU’) has rendered its decision in case C-299/13 relating to the compatibility of the Belgian tax on the conversion of bearer securi … more

Patrice Delacroix

On 9 October 2014, the Court of Justice of the European Union (below ‘CJEU’) has rendered its decision in case C-299/13 relating to the compatibility of the Belgian tax on the conversion of bearer securi … more

New Belgian tax measures announced

A number of new tax measures have been announced in the framework of the Belgian government formation and the budget for 2015, on which an agreement was reached in the second week of October 2014. These measu … more

PVC

A number of new tax measures have been announced in the framework of the Belgian government formation and the budget for 2015, on which an agreement was reached in the second week of October 2014. These measu … more

Stock options – Opinion on fiscal regime of stock options in case of a cashless exercise

The Court of Appeal of Ghent confirmed in its decision of 9 September 2014 that the so-called ‘cashless exercise’ of options does not prevent the application of the tax regime as ment … more

Nicolas de Limbourg

The Court of Appeal of Ghent confirmed in its decision of 9 September 2014 that the so-called ‘cashless exercise’ of options does not prevent the application of the tax regime as ment … more

New bilateral social security agreement between Belgium and Brazil

A social security agreement between Belgium and Brazil enters into force on 1 December 2014. This agreement enables companies to second employees to the other country while keeping them subject to the home so … more

Bart Elias

A social security agreement between Belgium and Brazil enters into force on 1 December 2014. This agreement enables companies to second employees to the other country while keeping them subject to the home so … more

Tax exemption on registration of foreign company cars: VAT certificate no longer required

In principle all cars that are used on public roads in Belgium have to be registered in Belgium, including company cars provided by foreign employers. However, depending on the factual circumstances, spec … more

Nicolas de Limbourg

In principle all cars that are used on public roads in Belgium have to be registered in Belgium, including company cars provided by foreign employers. However, depending on the factual circumstances, spec … more

ESMA Q&A – FSMA position papers – latest developments

The European Securities and Markets Authority (below ‘ESMA’) promotes common supervisory approaches and practices in respect of the application of the European Directive on Alternative Investment Fund Ma … more

olivier-hermand-author

The European Securities and Markets Authority (below ‘ESMA’) promotes common supervisory approaches and practices in respect of the application of the European Directive on Alternative Investment Fund Ma … more

Direct pension promise contracts need to be reported to DB2P before 31.12.2014

In 2006, the Belgian legislator decided to create a database for second pillar pensions (called ‘DB2P’). Information gathering started in 2011. DB2P will be fully operational soon. Pension instit … more

Christiaan Moeskops pwc_28

In 2006, the Belgian legislator decided to create a database for second pillar pensions (called ‘DB2P’). Information gathering started in 2011. DB2P will be fully operational soon. Pension instit … more

European Commission explains State aid investigations in Ireland and Luxembourg

On 30 September 2014 the European Commission published its opening decisions in the formal investigations into transfer pricing agreements between Apple and, allegedly, Fiat and – respecti … more

axel-smits-author

On 30 September 2014 the European Commission published its opening decisions in the formal investigations into transfer pricing agreements between Apple and, allegedly, Fiat and – respecti … more

Corporate income tax returns: extension of the filing deadline

Due to some technical maintenance on the server of the Belgian tax authorities, the electronic filing of the tax returns was not possible during the weekend. The Belgian tax authorities therefore decided to e … more

PVC

Due to some technical maintenance on the server of the Belgian tax authorities, the electronic filing of the tax returns was not possible during the weekend. The Belgian tax authorities therefore decided to e … more

Ex-officio tax relief – Extended application and clarification of the concept of ‘material error’

Within six months (as from the third working day) following the date of sending of the tax assessment notice by the Belgian tax authorities, taxpayers can file a tax claim in order to obtain a rectification. … more

Nicolas de Limbourg

Within six months (as from the third working day) following the date of sending of the tax assessment notice by the Belgian tax authorities, taxpayers can file a tax claim in order to obtain a rectification. … more

OECD Report on Action 6 – Treaty Abuse

The OECD published a discussion draft in March 2014 on proposals for addressing perceived abuse of tax treaties. The draft recommended extensive changes to the OECD Model Treaty together with suggested dome … more

axel-smits-author

The OECD published a discussion draft in March 2014 on proposals for addressing perceived abuse of tax treaties. The draft recommended extensive changes to the OECD Model Treaty together with suggested dome … more

OECD guidance on Transfer Pricing Aspects of Intangibles: Revised Chapters I, II and VI of the OECD Transfer Pricing Guidelines

On 16 September 2014, the OECD published its final and interim revisions in relation to Chapters I, II and VI of the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations. Th … more

rp_246035426_150_150.jpg

On 16 September 2014, the OECD published its final and interim revisions in relation to Chapters I, II and VI of the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations. Th … more

OECD finalises guidance on transfer pricing documentation and country-by-country reporting

On 16 September 2014, the Organisation for Economic Cooperation and Development (OECD) finalized its guidance in relation to transfer pricing documentation and country-by-country (CbC) reporting. The final r … more

axel-smits-author

On 16 September 2014, the Organisation for Economic Cooperation and Development (OECD) finalized its guidance in relation to transfer pricing documentation and country-by-country (CbC) reporting. The final r … more

Notion of ‘vesting or payment’ of second-pillar complementary pensions aimed at being clarified by Practice Note

Article 64 of the Program Act of 22 June 2012 (B.S. 28.06.2012) has changed the tax rates applicable to lump-sum payments and surrender values of employer or company-sponsored pensions (i.e. second-pillar … more

Nicolas de Limbourg

Article 64 of the Program Act of 22 June 2012 (B.S. 28.06.2012) has changed the tax rates applicable to lump-sum payments and surrender values of employer or company-sponsored pensions (i.e. second-pillar … more

Court of Appeal: VAT reverse charge – Penalties

A recent court case of the Brussels Court of Appeal again shows how expensive it can be for businesses not to apply the reverse charge and thereby not self-account for the VAT due on incoming invoices. <p dir="L … more

Wouter Villette

A recent court case of the Brussels Court of Appeal again shows how expensive it can be for businesses not to apply the reverse charge and thereby not self-account for the VAT due on incoming invoices. <p dir="L … more

EU case law – Discriminatory tax treatment of foreign real estate income

According to Belgian income tax legislation, individuals who own a (secondary) house or apartment in Belgium (i.e. a built property other than their own dwelling) and who do not let out this property, are ta … more

Nicolas de Limbourg

According to Belgian income tax legislation, individuals who own a (secondary) house or apartment in Belgium (i.e. a built property other than their own dwelling) and who do not let out this property, are ta … more

OECD recommendations on BEPS 2014 deliverables: Few surprises, but no let-up

As indicated in a newspost earlier this week, the BEPS deliverables for the September 2014 deadline have been published on 16 September 2014 and are available on the OECD website. Ple … more

axel-smits-author

As indicated in a newspost earlier this week, the BEPS deliverables for the September 2014 deadline have been published on 16 September 2014 and are available on the OECD website. Ple … more

Transfer of own goods between VAT warehouses

The Belgian VAT authorities recently published a new administrative decision (applicable as from 1 September 2014) stating that the transfer of own goods from one VAT warehouse to another can, under certain … more

Christoph Zenner

The Belgian VAT authorities recently published a new administrative decision (applicable as from 1 September 2014) stating that the transfer of own goods from one VAT warehouse to another can, under certain … more

VAT group: head office/branch transactions – Skandia CJEU case

On 17 September 2014, the Court of Justice of the European Union (CJEU) rendered its decision in Skandia America Corporation (case C-7/13) regarding the question whether transactions between a head office an … more

Christoph Zenner

On 17 September 2014, the Court of Justice of the European Union (CJEU) rendered its decision in Skandia America Corporation (case C-7/13) regarding the question whether transactions between a head office an … more

Italian substitute tax on credit facility: automatic application replaced by election mechanism

The substitute tax on credit facility agreements under Articles 15 and following of Presidential Decree No. 601 issued on September 29, 1973 An amendment enacted in December 2013 now allows parties to cer … more

olivier-hermand-author

The substitute tax on credit facility agreements under Articles 15 and following of Presidential Decree No. 601 issued on September 29, 1973 An amendment enacted in December 2013 now allows parties to cer … more

OECD releases BEPS reports following September deadline

The OECD is keeping its word in preparing and delivering on the objectives as they have been set in the BEPS Action Plan. The deliverables for the September 2014 deadline have just been published and are a … more

axel-smits-author

The OECD is keeping its word in preparing and delivering on the objectives as they have been set in the BEPS Action Plan. The deliverables for the September 2014 deadline have just been published and are a … more

ECJ Decision (K Oy): VAT rate for non-printed books

On 11 September 2014, the Court of Justice of the European Union (ECJ) gave its decision in K Oy (case C-219/13) regarding the question whether reduced rates for books published in paper form should equally … more

Christoph Zenner

On 11 September 2014, the Court of Justice of the European Union (ECJ) gave its decision in K Oy (case C-219/13) regarding the question whether reduced rates for books published in paper form should equally … more

Notional interest deduction rate for tax year 2016 is 1.630%

The Belgian NID rate for tax year 2016 (accounting years ending between 31 December 2015 and 30 December 2016, both dates included) would be 1.630%. Currently, the NID rate (for tax year 2015) is 2. … more

PVC

The Belgian NID rate for tax year 2016 (accounting years ending between 31 December 2015 and 30 December 2016, both dates included) would be 1.630%. Currently, the NID rate (for tax year 2015) is 2. … more

FSMA provides technical details for AIFM reporting

The Belgian Financial Services and Markets Authority (FSMA) has issued a circular that aims to clarify technical details of how managers registered and approved in Belgium of altern … more

olivier-hermand-author

The Belgian Financial Services and Markets Authority (FSMA) has issued a circular that aims to clarify technical details of how managers registered and approved in Belgium of altern … more

BEPS: OECD is gearing up towards the September deadlines

The OECD’s Action Plan on Base Erosion and Profit Shifting (BEPS) was published in July 2013 with a view to addressing perceived flaws in international tax rules. The 40-page Action Plan, which was negotia … more

Isabel Verlinden

The OECD’s Action Plan on Base Erosion and Profit Shifting (BEPS) was published in July 2013 with a view to addressing perceived flaws in international tax rules. The 40-page Action Plan, which was negotia … more

Upcoming Global OECD BEPS webcasts

In the framework of the upcoming G20 Finance Ministers meeting to be held in Cairns, Australia on 20-21 September 2014, there are two global OECD BEPS webcasts scheduled this month for you in orde … more

axel-smits-author

In the framework of the upcoming G20 Finance Ministers meeting to be held in Cairns, Australia on 20-21 September 2014, there are two global OECD BEPS webcasts scheduled this month for you in orde … more

FASB adds income tax accounting topics to its agenda

During its Agenda Prioritisation meeting on 13 August, 2014, the Financial Accounting Standards Board (FASB) added the following two income tax accounting topics to its agenda as part of its broader simplif … more

koen-de-grave-author

During its Agenda Prioritisation meeting on 13 August, 2014, the Financial Accounting Standards Board (FASB) added the following two income tax accounting topics to its agenda as part of its broader simplif … more

BASC published final advice 2014/8 on the Belgian GAAP treatment of the Fairness Tax

Following the draft advice published on 2 April 2014, the Belgian Accounting Standards Commission (BASC) issued advice 2014/8 on the Belgian GAAP treatment of the Fairness Tax. This advice confirms what was s … more

koen-de-grave-author

Following the draft advice published on 2 April 2014, the Belgian Accounting Standards Commission (BASC) issued advice 2014/8 on the Belgian GAAP treatment of the Fairness Tax. This advice confirms what was s … more

Telework: The National Social Security Office brings its position into line with the tax authorities

In the Practice Note of 16 January 2014, the Belgian tax authorities announced that a monthly tax-free lump-sum of EUR 20 as a compensation for the business use of a privately owned computer and internet co … more

Bart Elias

In the Practice Note of 16 January 2014, the Belgian tax authorities announced that a monthly tax-free lump-sum of EUR 20 as a compensation for the business use of a privately owned computer and internet co … more

Court of Appeal of Ghent: no interest withholding tax exemption without certificate

In a recent – severe – judgement, the Court of Appeal of Ghent (18 March 2014) ruled that no interest withholding tax exemption can be claimed by lack of a properly dated certificate. Under Belgia … more

lieven-schoonjans-author

In a recent – severe – judgement, the Court of Appeal of Ghent (18 March 2014) ruled that no interest withholding tax exemption can be claimed by lack of a properly dated certificate. Under Belgia … more

European Commission launches public consultation on IFRS

The European Commission is holding a public consultation to seek views from all interested parties on their experience of Regulation 1606/2002 (“the IAS Regulation”). The results of this public c … more

koen-de-grave-author

The European Commission is holding a public consultation to seek views from all interested parties on their experience of Regulation 1606/2002 (“the IAS Regulation”). The results of this public c … more

OECD releases request for input on BEPS Action 11

Background The Action 11 work of the BEPS (base erosion and profit shifting) action plan aims to produce an overview of several different eco … more

axel-smits-author

Background The Action 11 work of the BEPS (base erosion and profit shifting) action plan aims to produce an overview of several different eco … more

The UCITS V Directive is now adopted

On 23 July 2014, the Council of the European Union formally approved the proposal for a “Directive of the European Parliament and of the council of amending Directive 2009/65/EC (the UCITS IV</ … more

olivier-hermand-author

On 23 July 2014, the Council of the European Union formally approved the proposal for a “Directive of the European Parliament and of the council of amending Directive 2009/65/EC (the UCITS IV</ … more

Circular letter on the deductibility of car costs

In a circular letter dated 15 July 2014 (see link below), the Belgian Minister of Finance, Koen Geens, has elaborated on the tax deductibility of the costs relating to cars being put at the disposal of third … more

Philippe Vanclooster

In a circular letter dated 15 July 2014 (see link below), the Belgian Minister of Finance, Koen Geens, has elaborated on the tax deductibility of the costs relating to cars being put at the disposal of third … more

Note to debtors of payroll tax for payments to non-residents (section 228, § 3 BITC or so-called ‘catch-all provision’)

On 23 July 2014, the Belgian Central Tax Administration published a note to the debtors of payroll tax for payments to non-residents in the Belgian Gazette, which provides for some welcome clarifications. <st … more

Philippe Vanclooster

On 23 July 2014, the Belgian Central Tax Administration published a note to the debtors of payroll tax for payments to non-residents in the Belgian Gazette, which provides for some welcome clarifications. <st … more

Global Tax Accounting Services Newsletter (April– June 2014)

In this release, an update is provided on a variety of accounting and reporting developments, including: country-by-country reporting the OECD project on hybrid mismatch arrangements, and the new converged standard on revenue recognition recently issued by the Financial Accounting Standards Board and International Accounting Standards Board Your attention is also drawn to some significant tax […]

koen-de-grave-author

In this release, an update is provided on a variety of accounting and reporting developments, including: country-by-country reporting the OECD project on hybrid mismatch arrangements, and the new converged standard on revenue recognition recently issued by the Financial Accounting Standards Board and International Accounting Standards Board Your attention is also drawn to some significant tax […]

OECD releases global standard for automatic exchange of tax information

Starting in 2012, political interest has increasingly focused on the opportunities provided by an automatic exchange of information between tax authorities. On 6 September 2013, the G20 Leaders committed to t … more

axel-smits-author

Starting in 2012, political interest has increasingly focused on the opportunities provided by an automatic exchange of information between tax authorities. On 6 September 2013, the G20 Leaders committed to t … more

VAT: Practice note – Retention of documents

The Belgian Income Tax and VAT authorities recently published a combined practice note commenting on the alignment of the Income Tax and VAT procedures as regards the retention of documents. What is … more

Christoph Zenner

The Belgian Income Tax and VAT authorities recently published a combined practice note commenting on the alignment of the Income Tax and VAT procedures as regards the retention of documents. What is … more

OECD Publishes 2014 Update to Model Tax Convention

The OECD Council approved  the 2014 Update to the OECD Model Tax Convention (the 2014 Update) on 15 July 2014. The 2014 Update was already approved by the Committee on Fiscal Affairs on 26 June 2014. The 20 … more

axel-smits-author

The OECD Council approved  the 2014 Update to the OECD Model Tax Convention (the 2014 Update) on 15 July 2014. The 2014 Update was already approved by the Committee on Fiscal Affairs on 26 June 2014. The 20 … more

Update: Member States agree to amend Parent-Subsidiary Directive

The European Union’s (EU) 28 Finance Ministers agreed, on June 20, 2014, to amend the EU’s Parent –Subsidiary Directive (Directive), addressing the effects of tax arbitrage resulting f … more

axel-smits-author

The European Union’s (EU) 28 Finance Ministers agreed, on June 20, 2014, to amend the EU’s Parent –Subsidiary Directive (Directive), addressing the effects of tax arbitrage resulting f … more

Update – Exemption method for foreign professional income incompatible with EU Law

As mentioned in our headline of 17 December 2013, Belgium was sentenced by the European Court of Justice for breaching EU law. The relevant judgment indicated that EU law is violated where a taxpayer cannot … more

Nicolas de Limbourg

As mentioned in our headline of 17 December 2013, Belgium was sentenced by the European Court of Justice for breaching EU law. The relevant judgment indicated that EU law is violated where a taxpayer cannot … more

Belgian corporate tax deduction rejected for stock option plan cost recharged by foreign parent company

Court of Appeal of Brussels confirms four-year old decision of Court of First Instance of Brussels. We refer to our HRS Headline of 26 May 2010. On 25 June 2014, the Court of App … more

Nicolas de Limbourg

Court of Appeal of Brussels confirms four-year old decision of Court of First Instance of Brussels. We refer to our HRS Headline of 26 May 2010. On 25 June 2014, the Court of App … more

Costs proper to the employer: new lump-sum amount for reimbursement of business use of private car

Employees using a privately owned car for business purposes can now be reimbursed a lump-sum amount of EUR 0.3468 per kilometre. Background Costs that an employee makes when using a privately owned car for business purp … more

Nicolas de Limbourg

Employees using a privately owned car for business purposes can now be reimbursed a lump-sum amount of EUR 0.3468 per kilometre. Background Costs that an employee makes when using a privately owned car for business purp … more

Refutable presumption of self-employed activity for company directors finally transposed into Belgian Law

According to Royal Decree n°38 of 19 December 1967, persons who are appointed as officers in a corporation or an association that is subject to Belgian corporate income tax or non-resident income tax are pr … more

Bart Elias

According to Royal Decree n°38 of 19 December 1967, persons who are appointed as officers in a corporation or an association that is subject to Belgian corporate income tax or non-resident income tax are pr … more

VAT : Opening right to deduct VAT for free supplies

The Belgian VAT Administration recently published a new administrative decision allowing a full VAT deduction for the provision for free of a kitchen infrastructure and some related periodical cost … more

Wouter Villette

The Belgian VAT Administration recently published a new administrative decision allowing a full VAT deduction for the provision for free of a kitchen infrastructure and some related periodical cost … more

Court of Appeal ruling on travel services provision may affect your VAT position

The Brussels Court of Appeal recently ruled that non-travel agent businesses may be classified as travel agents for VAT purposes if a substantial part of the services they perform relate to tr … more

Wouter Villette

The Brussels Court of Appeal recently ruled that non-travel agent businesses may be classified as travel agents for VAT purposes if a substantial part of the services they perform relate to tr … more

Foreign EU VAT refunds for 2013 require action

Businesses that incurred VAT on business expenditure in the EU may be able to recover this VAT provided they apply the right procedures and comply with the deadlines of 30 June 2014 for non-EU bus … more

Christoph Zenner

Businesses that incurred VAT on business expenditure in the EU may be able to recover this VAT provided they apply the right procedures and comply with the deadlines of 30 June 2014 for non-EU bus … more

Social security authorities exempt vans from CO2 tax

The social security authorities have recently adopted a new position on CO2 contributions on company vehicles. Principles of the current regime When an employer provides an employee with a company vehicle whic … more

Bart Elias

The social security authorities have recently adopted a new position on CO2 contributions on company vehicles. Principles of the current regime When an employer provides an employee with a company vehicle whic … more

New practice note: Withholding taxes for Belgian-sourced dividends received by Belgian-regulated investment companies

On 24 June 2014, the tax administration published a Practice Note on its website related to the 2013 modification of the withholding tax regime for Belgian-sourced dividends received by Belgian-regul … more

olivier-hermand-author

On 24 June 2014, the tax administration published a Practice Note on its website related to the 2013 modification of the withholding tax regime for Belgian-sourced dividends received by Belgian-regul … more

Danish National Tax Tribunal publishes its first decision regarding a cash pool arrangement

In early 2014,the National Tax Tribunal (Landsskatteretten) published its first transfer pricing decision regarding a cash pool arrangement. The decision concerns the determination of intercompany interest r … more

axel-smits-author

In early 2014,the National Tax Tribunal (Landsskatteretten) published its first transfer pricing decision regarding a cash pool arrangement. The decision concerns the determination of intercompany interest r … more

EU Member States agree to amend the EU PSD to tackle hybrid loan arrangements

On 20 June 2014, the EU’s Council of Economic and Finance (ECOFIN) Ministers took place in Luxembourg. ECOFIN agreed amongst others on the amendments to the Parent-Subsidiary … more

axel-smits-author

On 20 June 2014, the EU’s Council of Economic and Finance (ECOFIN) Ministers took place in Luxembourg. ECOFIN agreed amongst others on the amendments to the Parent-Subsidiary … more

Formal EU State Aid investigation into certain tax rulings

On June 11, 2014, the European Commission opened a formal State Aid investigation procedure into the transfer pricing arrangements and corporate taxation of certain companies in Ireland, the Netherlands and … more

axel-smits-author

On June 11, 2014, the European Commission opened a formal State Aid investigation procedure into the transfer pricing arrangements and corporate taxation of certain companies in Ireland, the Netherlands and … more

Real Estate – VAT : Administration denounces artificial split of transactions in important renovation projects – application of 6% reduced VAT rate and more at stake !

For years, certain promotors have been marketing reconstruction or heavy renovation projects at a 6% reduced VAT rate. With <a title="Fisconet" href="http://ccff02.minfin.fgov.be/KMWeb/document.do?m … more

Wouter Villette

For years, certain promotors have been marketing reconstruction or heavy renovation projects at a 6% reduced VAT rate. With <a title="Fisconet" href="http://ccff02.minfin.fgov.be/KMWeb/document.do?m … more

Non-application of NID to foreign permanent establishment and real estate

The Belgian tax authorities have recently issued a practice note with regard to the Belgian notional interest deduction (‘NID’) and the possibility for the taxpayer to file a tax claim or request … more

Philippe Vanclooster

The Belgian tax authorities have recently issued a practice note with regard to the Belgian notional interest deduction (‘NID’) and the possibility for the taxpayer to file a tax claim or request … more

The 6th State Reform and Belgian expatriate tax

On 28 May 2014 the law of 8 May 2014, modifying the Belgian income tax code of 1992 following the 6th State Reform (Act of 6 January 2014) was published in the Official Gazette. Rules applicable until … more

Nicolas de Limbourg

On 28 May 2014 the law of 8 May 2014, modifying the Belgian income tax code of 1992 following the 6th State Reform (Act of 6 January 2014) was published in the Official Gazette. Rules applicable until … more

Brazil enacts new rules impacting dividend withholding, interest deductions, goodwill amortization and CFCs

The Brazilian government on May 14, 2014 enacted Law No. 12.973/2014, converting into law Provisional Measure 627/2013 (PM 627). The key provisions of the enacted law are the revocation of the Transitional Ta … more

Philippe Vanclooster

The Brazilian government on May 14, 2014 enacted Law No. 12.973/2014, converting into law Provisional Measure 627/2013 (PM 627). The key provisions of the enacted law are the revocation of the Transitional Ta … more

6th State reform: Taxation of individuals – Changes published

On the 28th of May 2014 the law reforming the Belgian Income Tax Code in light of the 6th state reform has been published in the Official Gazette. Due to this state reform Regions (Flanders, Brussels and Wall … more

Nicolas de Limbourg

On the 28th of May 2014 the law reforming the Belgian Income Tax Code in light of the 6th state reform has been published in the Official Gazette. Due to this state reform Regions (Flanders, Brussels and Wall … more

Luxembourg – Adoption of law revising corporate exit tax rules

On 13 May 2014, the Luxembourg Parliament approved the law (bill n. 6556) amending some of Luxembourg tax provisions that were considered not to … more

Patrice Delacroix

On 13 May 2014, the Luxembourg Parliament approved the law (bill n. 6556) amending some of Luxembourg tax provisions that were considered not to … more

Parliamentary question regarding the application of Belgian thin cap rules for cash pooling activities

The Minister of Finance answered a Parliamentary question on how the Belgian thin cap rules should be applied in practice to cash poolin … more

axel-smits-author

The Minister of Finance answered a Parliamentary question on how the Belgian thin cap rules should be applied in practice to cash poolin … more

Challenges multinationals may face in completing the OECD’s country-by-country reporting template

On 30 January 2014, the Organisation for Economic Cooperation and Development (OECD) released a discussion draft on transfer pricing documentatio … more

koen-de-grave-author

On 30 January 2014, the Organisation for Economic Cooperation and Development (OECD) released a discussion draft on transfer pricing documentatio … more

Personal income taxes – Calculation of the tax surcharge due to late tax filing

Based on the Belgian Income Tax Code 1992, when a taxpayer does not file a tax return or files an incomplete or incorrect tax return, a tax surcharge is applied ‘on the ta … more

Nicolas de Limbourg

Based on the Belgian Income Tax Code 1992, when a taxpayer does not file a tax return or files an incomplete or incorrect tax return, a tax surcharge is applied ‘on the ta … more

Good faith transitional relief under FATCA provided by US Treasury and IRS

On May 2, 2014, the US Treasury Department (Treasury) and Internal Revenue Service (IRS) announced in Notice 2014-33 (the Notice) that calendar years 2014 and 2015 will be regarded as a transition period for … more

olivier-hermand-author

On May 2, 2014, the US Treasury Department (Treasury) and Internal Revenue Service (IRS) announced in Notice 2014-33 (the Notice) that calendar years 2014 and 2015 will be regarded as a transition period for … more

EU FTT

EU FTT: UK’s challenge blocked for now but UK Treasury indicates they will not let it be. In april 2013, the UK launched a legal challenge against the introduction of an EU Financial Transaction Tax (‘EU FTT’) under the Enhanced Cooperation Procedure (‘ECP’). Two days befor … more

olivier-hermand-author

EU FTT: UK’s challenge blocked for now but UK Treasury indicates they will not let it be. In april 2013, the UK launched a legal challenge against the introduction of an EU Financial Transaction Tax (‘EU FTT’) under the Enhanced Cooperation Procedure (‘ECP’). Two days befor … more

Advice Belgian ruling commission on use of GAAR in reorganizations

Since the introduction of the new general anti abuse (section 344 Belgian Income Tax Code) provision in Belgium, there was uncertainty on how the latter interacts with the existing specific anti-abuse provis … more

axel-smits-author

Since the introduction of the new general anti abuse (section 344 Belgian Income Tax Code) provision in Belgium, there was uncertainty on how the latter interacts with the existing specific anti-abuse provis … more

ECOFIN fails to reach agreement on anti-hybrid measure to be implemented into the Parent-Subsidiary Directive – FTT first on shares and some derivatives

1. Background On 25 November 2013, the European Commission has proposed to amend the EU Parent-Subsidiary Directive (‘PSD’) … more

Philippe Vanclooster

1. Background On 25 November 2013, the European Commission has proposed to amend the EU Parent-Subsidiary Directive (‘PSD’) … more

Publication of model tax returns for assessment year 2014

Model tax returns for assessment year 2014 now available In the Belgian Official Gazette of 2 May 2014, the model tax returns for assessment year 2014 for resident companies, for resident legal entities and f … more

lieven-schoonjans-author

Model tax returns for assessment year 2014 now available In the Belgian Official Gazette of 2 May 2014, the model tax returns for assessment year 2014 for resident companies, for resident legal entities and f … more

Belgium and the US sign FATCA Intergovernmental Agreement

On 23 April 2014, Minister of Finance, Koen Geens and US Ambassador, Mark Storella signed the long awaited bilateral Intergovernmental Agreement (IGA) intended to implement the Foreign Account Tax Compliance … more

olivier-hermand-author

On 23 April 2014, Minister of Finance, Koen Geens and US Ambassador, Mark Storella signed the long awaited bilateral Intergovernmental Agreement (IGA) intended to implement the Foreign Account Tax Compliance … more

EC Infringement Procedure

On 16 April the European Commission requested the Netherlands to end the discriminatory tax charge on dividends received on shares held by insurance companies based in another EU Member State or EEA member country

olivier-hermand-author

On 16 April the European Commission requested the Netherlands to end the discriminatory tax charge on dividends received on shares held by insurance companies based in another EU Member State or EEA member country

New daily lump-sum allowances for foreign business trips

An employer/company can pay daily lump-sum allowances for foreign business travel to employees or company directors in order to reimburse certain expenses. The lump-sum reimbursements can be determined on th … more

Nicolas de Limbourg

An employer/company can pay daily lump-sum allowances for foreign business travel to employees or company directors in order to reimburse certain expenses. The lump-sum reimbursements can be determined on th … more

The EU Joint Transfer Pricing Forum published the transfer pricing profiles of EU Member States.

The EU Joint Transfer Pricing Forum has published various transfer pricing profiles of EU Member States on its website.  These profiles contain information for the EU Member States on the domestic transfer p … more

rp_246035426_150_150.jpg

The EU Joint Transfer Pricing Forum has published various transfer pricing profiles of EU Member States on its website.  These profiles contain information for the EU Member States on the domestic transfer p … more

Tax return deadline for income year 2013 (assessment year 2014) – Corporates, legal / non-resident entities

The Belgian tax authority has communicated the deadlines for the different tax returns assessment year 2014 for corporates, legal entities and non-resident entities. An overview of these deadlines can be found below. For tax residents and non-residents with an accounting year ending on 31 December 2013: Corporate income tax return Belgian tax residents              30 September 2014 Income […]

Philippe Vanclooster

The Belgian tax authority has communicated the deadlines for the different tax returns assessment year 2014 for corporates, legal entities and non-resident entities. An overview of these deadlines can be found below. For tax residents and non-residents with an accounting year ending on 31 December 2013: Corporate income tax return Belgian tax residents              30 September 2014 Income […]

Parliamentary question clarifies whether (for direct tax purposes) “small tools, small equipment and stationary” should be considered as an investment or an immediate expense.

Recently, the minister of Finance answered a Parliamentary question regarding “small equipment, small tools and stationary”, i.e. whether for direct tax purposes, … more

Philippe Vanclooster

Recently, the minister of Finance answered a Parliamentary question regarding “small equipment, small tools and stationary”, i.e. whether for direct tax purposes, … more

The OECD’s public consultation on transfer pricing documentation and country-by-country reporting on 19 May

The OECD will hold a public consultation on the discussion draft on transfer pricing documentation and country-by-country reporting on 19 May 2014 at the OECD Conference Cen … more

axel-smits-author

The OECD will hold a public consultation on the discussion draft on transfer pricing documentation and country-by-country reporting on 19 May 2014 at the OECD Conference Cen … more

FATCA Intergovernmental Agreement between Belgium and US will be signed on 23 April

On 12 April 2014, the Minister of Finance Koen Geens has announced the imminent signing of the agreement between the United States and Belgium regarding the mutual exchange of financial information and the i … more

olivier-hermand-author

On 12 April 2014, the Minister of Finance Koen Geens has announced the imminent signing of the agreement between the United States and Belgium regarding the mutual exchange of financial information and the i … more

BASC issues draft advice on the Belgian GAAP treatment of the Fairness Tax

The Belgian Accounting Standards Commission (BASC) was asked to provide guidance with respect to the accounting treatment of the Fairness Tax. The Fairness Tax is a separate tax of 5.15% (5% increased by 3% c … more

koen-de-grave-author

The Belgian Accounting Standards Commission (BASC) was asked to provide guidance with respect to the accounting treatment of the Fairness Tax. The Fairness Tax is a separate tax of 5.15% (5% increased by 3% c … more

PwC comments on the Discussion Draft on Transfer Pricing Comparability Data and Developing Countries

PwC has provided the OECD with its comments on the ‘discussion draft on transfer pricing comparability data and developing countries’ on 11 April 2014. PwC agrees with the OECD in that comparabil … more

rp_246035426_150_150.jpg

PwC has provided the OECD with its comments on the ‘discussion draft on transfer pricing comparability data and developing countries’ on 11 April 2014. PwC agrees with the OECD in that comparabil … more

Practice note issued in relation to Belgian fairness tax

As from AY14 (which are financial years ending 31 December 2013 or later), a so called ‘fairness tax’ of 5.15% is levied on certain dividend distributions made by large Belgian companies or by fo … more

Philippe Vanclooster

As from AY14 (which are financial years ending 31 December 2013 or later), a so called ‘fairness tax’ of 5.15% is levied on certain dividend distributions made by large Belgian companies or by fo … more

Belgian VAT authorities publish new VAT practice note

The Belgian VAT administration has recently published a new VAT practice note n°14 /2014 dated 4 April 2014 (E.T. 120.000) on (electronic) invoicing. Said VAT practice note is retroactively applicable as … more

Ine Lejeune

The Belgian VAT administration has recently published a new VAT practice note n°14 /2014 dated 4 April 2014 (E.T. 120.000) on (electronic) invoicing. Said VAT practice note is retroactively applicable as … more

BEPS Webcast – A focus on the digital economy, 17 April 2014

The OECD recently released its discussion draft focused on the digital economy as part of the Base Erosion and Profit Shifting (BEPS) Action Plan. In response to this draft, we will hold another webcast in o … more

axel-smits-author

The OECD recently released its discussion draft focused on the digital economy as part of the Base Erosion and Profit Shifting (BEPS) Action Plan. In response to this draft, we will hold another webcast in o … more

PwC announces publication of study on EU Customs Union

We are pleased to inform you that PwC has conducted a study for DG TAXUD on the Evaluation of the Customs Union during the period 2012 – 2013. The study includes an analysis and evaluation of the EU Cus … more

Ine Lejeune

We are pleased to inform you that PwC has conducted a study for DG TAXUD on the Evaluation of the Customs Union during the period 2012 – 2013. The study includes an analysis and evaluation of the EU Cus … more

Reporting obligation foreign bank accounts extended

Last week the Belgian parliament voted an amendment to the Belgian Income Tax Code with respect to the reporting obligation of foreign bank accounts by Belgian individuals at the central contact point (“ce … more

Philippe Vanclooster

Last week the Belgian parliament voted an amendment to the Belgian Income Tax Code with respect to the reporting obligation of foreign bank accounts by Belgian individuals at the central contact point (“ce … more

Company-provided accommodation – New practice note

Where immovable property is (fully or partly) put at the disposal of an employee or company director by an employer/company free of charge, the individual is deemed to be in receipt of a taxable benefit in k … more

Nicolas de Limbourg

Where immovable property is (fully or partly) put at the disposal of an employee or company director by an employer/company free of charge, the individual is deemed to be in receipt of a taxable benefit in k … more

Reporting requirement legal constructions – Royal Decree published

On 2 April 2014, a Royal Decree was published, listing up the legal constructions which are in scope of the recently introduced reporting requirement. The Act of Miscellaneous p … more

axel-smits-author

On 2 April 2014, a Royal Decree was published, listing up the legal constructions which are in scope of the recently introduced reporting requirement. The Act of Miscellaneous p … more

Accounting Standards Commission withdraws Advice 126/17 on valuation of assets

As a response to the GIMLE judgement of the European Court of Justice (ECJ judgment C-322/12, 3 October, 2013 [GIMLE ]), the Belgian Accounting Standards Commission (ASC) announced the withdrawal of its opin … more

axel-smits-author

As a response to the GIMLE judgement of the European Court of Justice (ECJ judgment C-322/12, 3 October, 2013 [GIMLE ]), the Belgian Accounting Standards Commission (ASC) announced the withdrawal of its opin … more

New tax on parking spaces in the Brussels Region

A new (environmental) tax on parking spaces will be effective as from 1 January 2015 (in accordance with the order of 2 May 2013 of the Brussels Region that entered into force on 5 February 2014). The … more

olivier-hermand-author

A new (environmental) tax on parking spaces will be effective as from 1 January 2015 (in accordance with the order of 2 May 2013 of the Brussels Region that entered into force on 5 February 2014). The … more

The IRS announced yesterday that it will treat 19 countries as having IGAs in effect.

On 2 April 2014, the US Treasury Department (Treasury) and the Internal Revenue Service (IRS) announced that jurisdictions that have reached agreements in substance with the United States on the terms of int … more

olivier-hermand-author

On 2 April 2014, the US Treasury Department (Treasury) and the Internal Revenue Service (IRS) announced that jurisdictions that have reached agreements in substance with the United States on the terms of int … more

Creation of a Belgian ‘Regulated Real Estate Company’: an optional regime for Belgian Real Estate Funds.

Following the EU Alternative Investment Fund Managers Directive (‘AIFMD’) and its Belgian implementation (below ‘AIFMD Regulations’), AIF Managers carry … more

olivier-hermand-author

Following the EU Alternative Investment Fund Managers Directive (‘AIFMD’) and its Belgian implementation (below ‘AIFMD Regulations’), AIF Managers carry … more