Payments to Cyprus and Luxembourg: subject to new reporting obligation, screen your existing structures
Payments by Belgian companies of over EUR 100K (in total) to recipients in Luxembourg and Cyprus must now be reported individually in a specific form to the tax authorities. If not, they risk being non-deductible for tax purposes. Besides the additional reporting effort that this entails, it also sheds light on those payments which are
Companies subject to Belgian corporate income tax (residents or non-residents) have to declare direct or indirect payments exceeding EUR 100,000 to recipients established in ‘tax havens’. For these purposes, a tax haven is defined as a country: with no or low taxation (i.e. the nominal standard tax rate is less than 10%); that, for the
Belgium-Luxembourg cross-border workers: mutual agreement signed and information regarding evidence to support presence in Luxembourg published Following the announcement made early February, the Belgian and Luxembourg finance ministers concluded on 16 March 2015 a mutual agreement with respect to cross-border employment tax situations that confirms, retroactively as from 1 January 2015, the introduction of a derogation to
The Belgian and Luxembourg governments had a joint meeting yesterday in Brussels and came to the following agreement with respect to cross-border employment tax situations: With respect to wages taxes, a tolerance will retroactively (as from 1 January 2015) enter into force regarding the physical presence outside the (usual) country of employment. Concretely, a Belgian resident
On December 19, the Luxembourg Parliament , 2014, enacted new tax measures for corporations and individuals, including amendments to Luxembourg’s transfer pricing legislation and documentation requirements. Multinationals should consider the measures, which are effective as of 1 January 2015, as they affect their existing and future Luxembourg operations. Guidance regarding certain practical aspects of some measures
Belgian requirements for payments to ‘tax havens’ As from 1 January 2010, companies subject to Belgian corporate income tax or Belgian non-resident corporate income tax are obliged to declare direct or indirect payments exceeding EUR 100,000 to recipients established in so-called ‘tax havens’. The reporting obligation applies to both cash payments and payments in kind.
On 13 May 2014, the Luxembourg Parliament approved the law (bill n. 6556) amending some of Luxembourg tax provisions that were considered not to be compliant with EU law. The changes are most notably in the area of exit taxation for corporate entities. Key changes: Deferral of the tax liabilities arising upon migration; and “Roll-over”