The Belgian Tax Administration (BTA) continues to send out letters to eligible taxpayers for missing/late filing of the mandatory transfer pricing documentation, as the case may be:
- The country-by-country report (art. 321/2 BITC),
- The country-by-country report notification (art. 321/3 BITC)
- The master file (art 321/4 BITC),
- The local file (art 321/5 BITC).
For the first infringement without the intent to evade taxes, the administrative penalty is set at 0 (zero) euro. However, as from the second infringement, the penalties for non, late or incomplete filing will vary between 1,250 EUR to 25,000 euro. Further, other administrative measures such as the reversal of the burden of proof or ex officio assessments are possible in case of late or non-filing of the mandatory transfer pricing documentation. The BTA allows that arguments are brought forward on why the transfer pricing documentation was not or late filed. On the contrary, it could also be that there was no infringement e.g. different year-end of the parent company. These arguments must be provided within the regular reply period.
We remind you therefore to file to transfer pricing documentation in due time to avoid penalties and any other administrative measure. The upcoming deadline for assessment year 2023 (companies with a 31 December year-end) is October 9th, 2023 for the local file (form 275 LF).
If you are in doubt whether your Belgian entity/establishment must comply with the Belgian transfer pricing documentation requirements, you can take a quick assessment here!
In case of questions, please contact Carla Buyens (firstname.lastname@example.org) or your trusted PwC contact!
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