Belgian transfer pricing documentation requirements submitted to Parliament

Jonas Van de Gucht 9 June 2016


On 2 June 2016, the Belgian Government introduced in Parliament a draft Program Act containing the blue-print of how Belgium aims to implement the outcome of the OECD’s BEPS Action 13 into Belgian tax law.

In essence, Belgium will introduce formal transfer pricing documentation requirements thereby requiring multinational entities (MNEs) with operations in Belgium – subject to certain conditions – to submit a Masterfile, a Local File and a country-by-country report.

The draft bill, when approved, will mandate Belgian-parented MNEs with annual consolidated group revenue of €750 million or more to comply with country-by-country reporting obligations.

The draft bill also contains obligations for filing the Masterfile and Local File under certain circumstances. Belgian entities that pass the thresholds must file the Masterfile no later than 12 months after the last day of the reporting period of the multinational group. Their Local File, however, must be filed with the tax return.

It is expected that the draft Program Act will be approved before summer recess and will apply to accounting years that started on or after 1 January 2016.

We refer to our previous post of 27 May 2016 for further information in this respect.

A more detailed summary of the envisaged provisions will be published early next week through a detailed TP Insight.