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Belgium Amends CbC Report Notification Requirement

Core Content

On 15 May 2019, Belgium published a new law in the Belgian Official Journal that amended its tax provisions, specifically focusing on transfer pricing reporting obligations. This law modifies the requirements for Country-by-Country (CbC) report notification forms (Form 275 CBC NOT), aiming to reduce the compliance burden for Belgian entities within multinational groups.

Main Points

• Legal Basis: The law is part of the Belgian Income Tax Code (ITC), specifically Article 321/3, which governs the CbC report notification requirement.
• Reporting Obligation: Previously, all qualifying multinational entities (MNEs) in Belgium were required to submit a 275 CBC NOT form annually to the Belgian tax authorities, indicating whether they were the ultimate parent entity (UPE) or a surrogate parent entity (SPE), or identifying the entity that would file the CbC report.
• New Requirement: The updated law introduces a new section (§3) to Article 321/3. Under this section, the 275 CBC NOT form is only required if there is a change in the ultimate parent entity compared to the previous reporting period.
• Effective Date: The new rule applies to the reporting period starting from 1 January 2019.
• Compliance Impact: This amendment simplifies the process for Belgian entities that are not the UPE or SPE, as they are no longer required to file the form unless there is a change in the UPE.

Key Information

• Form 275 CBC NOT: This is the country-by-country report notification form used by Belgian entities to inform the tax authorities of their position within the MNE group.
• Qualifying MNE Groups: Entities that are part of a qualifying MNE group must comply with the CbC reporting rules.
• Ultimate Parent Entity (UPE): The entity that has no parent company within the group.
• Surrogate Parent Entity (SPE): A company that is not the UPE but is designated to file the CbC report on behalf of the group.
• Reporting Deadline: The form must be submitted on or before the last day of the group's reporting period.

Implications

• Reduced Compliance Burden: The amendment reduces the administrative load on Belgian entities that are not the UPE or SPE.
• Focus on Change: Only entities experiencing a change in ultimate parent entity need to file the form, which streamlines the process.
• Clarity for Tax Authorities: The law provides clearer guidance to the Belgian tax authorities on when the form should be submitted.

Useful Links and Resources

• Arm's Length Standard: A key principle in transfer pricing that ensures transactions between related parties are priced as if they were between independent entities.
• Transfer Pricing Alerts: Deloitte provides alerts and updates on transfer pricing developments globally.

Contacts

For further information or assistance, you can contact:

• Jurgen Meersman (Gent)
  jmeersman@deloitte.com
• Ann Gaublomme (Brussels)
  agaublomme@deloitte.com
• André Schaffers (Brussels)
  aschaffers@deloitte.com

Disclaimer

This communication is for general information purposes only. Deloitte does not provide professional advice or services through this document. It is recommended to consult a qualified professional adviser before making any decisions that may impact business or financial matters.

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