Payments to tax havens : new circular letter published
Belgian tax law foresees a reporting obligation for (in)direct payments made to tax havens (in case the total amount of these payments is minimum EUR 100,000 in the taxable period concerned). In this context, we also refer to our newsflash published on 1 July 2021. On 20 December 2021, a circular letter has been published
Important update on payments to tax havens for assessment year 2021
Companies making direct or indirect payments to recipients established in so-called tax havens are required to report these payments where they in total exceed EUR 100,000 during the taxable period. A tax haven is defined as a country that does not effectively or substantially apply the standard on exchange of information on request (so-called OECD
Update on list of non-compliant countries – circular letter published
On 26 January 2017, a circular letter has been published with respect to the updated list of non-compliant countries in light of the international standards regarding transparency and exchange of information. More in particular, five new jurisdictions (Guatemala, Marshall Islands, (the Federal States of) Micronesia, Panama and Trinidad & Tobago) have been added to the
European Parliament approves amended Anti-Tax Avoidance Directive
On 8 June 2016, the European Parliament (EP) approved 91 amendments to a draft report of the Anti-Tax Avoidance Directive. The amendments to the draft Anti-Tax Avoidance Directive include, amongst others, proposals for a 15% rate for the application of the switch-over rule, an EU blacklist of tax havens and sanctions against uncooperative jurisdictions, additional limitations
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
Reporting obligation for payments to tax havens: impact for payments to Cyprus and Luxembourg
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
Belgian reporting obligation for payments to tax havens
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.
Reporting obligation for payments to tax havens extended to Luxembourg, Cyprus, BVI and Seychelles
Background Since January 1, 2010, companies subject to Belgian corporate income tax or Belgian non-resident corporate income tax are obliged to declare (in form 275F) direct or indirect payments exceeding EUR 100,000 to recipients established in so-called ‘tax havens’ (article 307, §1, 4° of the Belgian Income Tax Code). The reporting obligation applies to both
