Tax Authorities have issued Circular Letter regarding the Group Contribution Regime
On 13 February 2020, a circular letter on the group contribution regime has been published (Dutch and French version). The group contribution regime, applicable as of financial year 2019 (assessment year 2020), enables Belgian companies and Belgian branches of entities located in the EER to transfer taxable profits to other affiliated Belgian companies/branches with the
Time to act as OECD/G20 Inclusive Framework moves forward on new tax rules
On the 31st of January 2020, after a two-day meeting held on 29 – 30 January, the OECD/G20 Inclusive Framework on BEPS issued a statement that updates the state-of-play regarding the work on tax challenges arising from the digitalization of the economy, and sets forth a revised work program on the Two-Pillar Approach. In this
The OECD releases its Transfer Pricing Guidance on Financial Transactions
The OECD has released its long-awaited final report on the transfer pricing aspects of financial transactions. The report will constitute the 10th chapter of the OECD Transfer Pricing Guidelines (as well as an additional section in Chapter I). It covers a wide range of financial transactions and provides guidance on critical aspects to be considered
Royal decree regarding significant changes on 30% EBITDA rule approved
On 10 December 2019, the draft repair act containing various changes to the 30% EBITDA rule has been withdrawn from the chamber leaving taxpayers in uncertainty on the application of the rule. However on 27 December 2019, a Royal Decree related to the 30% EBITDA rule has been published. The Royal Decree includes some of
Mandatory disclosure rules for intermediaries (DAC 6) – Belgian law adopted by the Chamber of Representatives
On 12 December, the draft bill implementing the EU Council Directive 2018/822/EU of 26 May 2018, also known as “DAC6 Directive”, has been adopted by the Chamber of Representatives. In short, DAC6 provides for the obligation to declare certain cross-border tax arrangements to the Belgian tax authorities. This obligation is incumbent on both taxpayers
Important update – Draft bill impacting 30% EBITDA rule delayed
The draft bill containing various modifications to article 198/1 BITC 92 (i.e. 30% EBITDA rule), has been removed from the agenda of the Finance Commission. Therefore it is unrealistic that these modifications will be adopted before year-end. The modifications included in the draft bill – and which are hence not adopted – include the allocation of
Upcoming due date for electronic filing of BEPS 13 related documents: 31 December 2019
Transfer pricing documentation has become an integral part of the compliance obligations of Belgian entities. The criteria, formalities and deadlines should therefore be followed up closely. Please find below a short summary of the obligations to be complied with by 31 December 2019. What? A Belgian entity part of a multinational group exceeding at least one
OECD Secretariat seeks input on global minimum tax design
On 8 November, the Organisation for Economic Co-operation and Development (OECD) Secretariat published a Public consultation document: the Global Anti-Base Erosion Proposal (‘GloBE’) (Pillar II) which seeks stakeholders’ views on the introduction of common global minimum tax rules across the more than 130 countries participating in the OECD Inclusive Framework. Such rules would operate through top-up taxes
