On 30 June 2020, the Belgian Tax Authorities published its Circular Letter 2020/C/88 containing an update of the Frequently Asked Questions (FAQ) (previous version dd. 4 May 2018) with respect to the Belgian transfer pricing documentation requirements on Country-by-Country Reporting (CbCR) (articles 321/1 to 321/2 BITC), the notification on CbCR (article 321/3 BITC), the Master File (article 321/4 BITC) and the Local form (article 321/5).
This Circular Letter provides more guidance on some specific topics such as the assessment of the different thresholds, the filing deadline, the entities in scope, etc. It also contains additional guidance on how to deal with the Belgian transfer pricing documentation requirements in case of e.g. joint ventures, acquisitions, mergers, permanent establishments (Pes), as well as the transactions in scope or information required. Finally, it provides further guidance on some specific topics related to the local form (275LF), the Master File (275MF), the CbCR (275CbC) and CbCR notification (275CBCNOT).
We welcome the additional guidance in the Circular Letter. Although this update of the FAQs provides further clarification on certain topics, some issues, however, do remain unclear, for example, the issues with regards to PEs in the form 275 LF. Apart from that, this update of the FAQs does not contain any further clarification on the penalties applicable in case of late filing of a correct and complete documentation related return vis-à-vis an incorrect and/or incomplete filing of such a return.
This updated guidance is helpful when filing the TP related documentation, in particular in view of the upcoming filing deadline of the form 275 LF (24 September 2020 for accounting periods ending 31 December 2019).
The updated FAQs can be found here in Dutch and in French
For further insights and in case of questions, please contact your local PwC contact or Carla Buyens.