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.
A Belgian entity part of a multinational group exceeding at least one of the following Belgian GAAP based criteria (during the financial year preceding the financial year most recently closed) needs to file a so-called form 275 MF (and potentially the Master file):
- operational and financial revenue of at least 50 million euro;
- balance sheet total of 1 billion euro;
- annual average number of employees of 100 full-time equivalents.
Furthermore, Belgian legal entities, branches and taxable permanent establishments that are part of a multinational group with a consolidated gross revenue of EUR 750 million or more (or an equivalent in a foreign currency) (during the financial year preceding the financial year most recently closed) have to meet Country-by-Country reporting obligations, i.e. Country-by-Country notification (CbC notification or form 275 CBCNOT) or Country-by-Country Report (CbC report or form 275CBC) in case of the ultimate parent company or local filing.
The form 275 MF (and potentially the Master file) and form 275 CBC should be submitted no later than 12 months after the last day of the group’s reporting period concerned whereas the Country-by-Country notification reporting obligations should be fulfilled no later than on the last day of the financial year concerned.
Hence, the form 275 MF (and potentially the Master file) and the form 275 CBC in relation to the financial year ended 31 December 2018 and the form 275 CBCNOT in relation to the financial year ending 31 December 2019 should be submitted by 31 December 2019.
However, based on a law of 2 May 2019, the Country-by-Country notification obligations for reporting periods ending as from 31 December 2019 (or later) will only be required if the information to be provided differs from the information that was provided in respect of the previous reporting period.
All BEPS 13 related documents will, in principle, have to be filed electronically via the MyMinfinPro website of the Belgian tax authorities in an XML format (with only an exception available for entities that have been the subject of a merger, a liquidation or an acquisition). Appendices have to be filed in a searchable PDF format.
For more information on the electronic filing procedure to be followed, click here.
Given the complexity of this procedure, we highly recommend to take action as soon as possible.
Our experts in Belgium are available to help you comply with these obligations in the most efficient manner. They have the required knowledge and expertise to help you fully understand and comply with the TP documentation requirements.
Contact your local adviser for any assistance. He/she will be happy to discuss this and support you.
- Accounting and Tax Compliance
- Base erosion and profit shifting (BEPS)
- Corporate income tax
- Transfer pricing