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Corporate Tax Alerts

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Brexit Readiness Update: the latest developments and more

14 December 2018

CJEU confirms that the UK can unilaterally revoke Article 50 - Political developments - Growing importance of preparing for a “No-deal” Brexit - Upcoming Brexit webinars

Transfer pricing documentation deadline extended

7 December 2018

The Belgian tax authorities have recently announced a delay in deadlines for the filing of the Master and Local File forms as well as CbC Notifications, initially due by 31 December 2018.

UBO register: information reporting deadline and FAQ publication

2 October 2018

The Royal Decree of 30 July 2018 (published on 14 August 2018) defines the implementation modalities for the 'register of ultimate beneficial owners' (the 'UBO register').

The Belgian legislator had already created the legal framework for the UBO register in the Anti-Money Laundering (AML) Law of 18 September 2017, implementing and transposing the Fourth AML Directive. The entities for which information concerning the UBOs must be collected are Belgian incorporated companies (including Belgian civil partnership), entities incorporated in accordance with the Belgian Non-profit Organisations Law (such as non-profit organisations, international non-profit organisations and private foundations), as well as trusts and fiduciaries.

Draft Repair Law amending the Corporate Tax Reform Law: Relevance for the Belgian Real Estate Industry?

20 June 2018

During the parliamentary discussions of the Corporate Tax Reform Law of 25 December 2017 (“Corporate Tax Reform Law”), the Minister of Finance announced that a new legislative act would be drafted in order to supplement and adjust the corporate tax reform. On 11 June 2018, the federal government submitted a draft Law on Various Income Tax Provisions (the “Repair Law”) at the Chamber of Representatives (Dutch | French). The government is aiming for a parliamentary vote on the final Law before the summer break.

Several of the measures included in the Repair Law are particularly relevant for the Belgian Real Estate sector. This newsletter will highlight some of the most relevant measures. This text should be read with sufficient prudence as some measures may still change during the parliamentary approval process.

Draft corporate tax reform repair law filed with Parliament

19 June 2018

You will recall that a major reform of Belgium’s corporate tax regime was enacted by the law of 25 December 2017. This reform becomes effective in three phases (tax years 2019, 2020 and 2021, starting on or after 1 January 2018, 2019 and 2020 respectively).

On Thursday 14 June 2018, a draft repair law, filed on 11 June 2018 with the House of Representatives, became available on the House’s website (Dutch | French). This tax alert provides a brief summary of the main repair measures, grouped per phase.

Belgian Tax Authorities publish FAQ on TP documentation requirements

9 May 2018

The Belgian Tax Authorities recently published a list of Frequently Asked Questions (FAQ) on the transfer pricing documentation requirements. The FAQ is available in Dutch and French on the Belgian Tax Authorities’ website.

BEPS: Belgium to change its position on commissionaire arrangements

4 May 2018

To prevent the circumvention of the existing permanent establishment (PE) definition, the OECD recommended important changes to said definition in its BEPS Action 7 Report.  In that context, the definition of ‘Agency PE’ in Article 5, §5 of the OECD Model Tax Convention has been revised to tackle so-called ‘commissionaire arrangements’ and similar strategies aimed at avoiding a PE.

Corporate tax return due date for tax year 2018 published

4 May 2018

The Belgian tax authorities have published the due date for the resident and non-resident corporate income tax returns for tax year 2018.

Deadline for fee forms 281.50 approaching

13 April 2018

This is a reminder that the deadline for the filing of forms 281.50 for fees and commissions paid or attributed in calendar year 2017 is 30 June 2018.

European Commission issues draft Directives on the taxation of the digital economy

26 March 2018

On 21 March 2018, the European Commission issued two draft Directives on the taxation of the digital economy. Under the proposed new comprehensive solution, companies would have to pay corporate income tax in each Member State where they have a significant digital presence. In the interim, the Commission proposes a 3% revenue-based Digital Services Tax on specific digital services where the main value is created through user participation.

Corporate income tax prepayments TY 2019

15 March 2018

With the due date for the first corporate income tax prepayment approaching (i.e. 10 April 2018 for financial years ending on 31 December 2018), attention is drawn to increased penalties for insufficient prepayments for tax year 2019.

Global Tax Reset: Updated Transfer Pricing Documentation Summary

8 March 2018

Prepared by Deloitte’s Global Transfer Pricing practice, the “Global Tax Reset - Transfer Pricing Documentation Summary” compiles essential country-by-country (CbC) reporting and documentation information (including master file and local file information when applicable) for 66 jurisdictions around the world.

Constitutional Court abolishes fairness tax as of tax year 2019

2 March 2018

On 1 March 2018, the Constitutional Court rendered its long-awaited decision on the fairness tax.

The fairness tax, effective from tax year 2014, is a separate tax imposed at a 5.15% rate on dividend distributions by non-SME companies, to the extent that they offset taxable income, in the year of distribution, with current year notional interest deduction and/or tax losses carried forward. The tax applies to both resident companies and permanent establishments (PEs) of non-resident companies.

In January 2014, an annulment action was filed before the Constitutional Court on grounds of the fairness tax’s incompatibility with the Constitution, the Treaty on the Functioning of the EU, the Parent-Subsidiary Directive (PSD) and Belgium’s tax treaties.

Are you prepared for upcoming Transfer Pricing filings?

22 February 2018

The due date to submit the CbC notification (assessment year 2018) is fast approaching.

The due date to submit the CbC Report and the Master File Form, both related to assessment year 2017, depends on the financial year-end of the group. For most Belgian entities, the due date coincides with 31 March 2018.

Upcoming 2018 Transfer Pricing audit wave

18 January 2018

Based on the latest available information, the 2018 TP audit wave should be launched mid-February.

Compared to last year, the 2018 TP audit wave is expected to have a greater impact for several reasons, as outlined in this alert.

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