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Corporate Tax Alerts

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Co-operative tax compliance programme

10 October 2018

The Belgian tax authorities have announced that they will start the pilot phase of their ‘co-operative tax compliance programme’ (‘CTCP’) at the end of 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.

Ruling Commission: silent mergers between a B-REIF and several real estate companies do not trigger WHT within 1 year after acquisition

18 December 2017

In a recently published ruling regarding several so-called ‘silent mergers’ (i.e. 100% parent-subsidiary mergers) between a B-REIF (‘GVBF’/‘FIIS’) and several ‘ordinary’ real estate companies, the Belgian Ruling Commission confirmed that no WHT is due on the liquidation dividend following these transactions. No WHT is due regardless of the fact that the B-REIF did not hold the real estate companies’ shares for at least 1 year. This ruling could be a game-changer for the entire B-REIT / B-REIF sector (‘B-REIT’ referring to the “GVV” / “SIR”).

U.S. Tax: The international tax provisions of the Tax Cuts and Jobs Act - conference agreement

18 December 2017

On 15 December 2017, the conference committee on the Tax Cuts and Jobs Act released its report. With respect to the international tax provisions that differed between the House and Senate versions of the bill, the conferees typically leaned in favour of the Senate version.

Compared to the previous versions of the tax bill, there are some more notable changes.

TP documentation deadline extended until 31 March 2018

29 November 2017

The Belgian tax authorities granted an extension until 31 March 2018 for the submission of the CbC Report and the Master File Form related to assessment year 2017, and the CbC notification related to assessment year 2018. These were initially due by 31 December 2017. The forms due by the end of March need to be submitted in XML format.

U.S. Tax: The latest developments on the international tax provisions of the Tax Cuts and Jobs Act

15 November 2017

As covered by the 7 November 2017 tax alert, the House Ways and Means Committee released, on 2 November 2017, the original bill of the Tax Cuts and Jobs Act (TCJA). On 6 November and 9 November 2017, the House Ways and Means Committee introduced amendments to the TCJA, which made certain changes and technical corrections to several provisions, including certain international tax provisions. 

Belgian TP reporting: calendar year-end deadline

13 November 2017

Companies with a financial year-end coinciding with each calendar year-end should comply with the following Belgian TP reporting requirements before 31 December 2017 (if they meet the applicable thresholds and conditions as covered by previous alerts):

·      Master file Form

·      Country-by-Country report

·      CbC Notification

Since October 2017, the above forms have to be filed through the tax administration’s online portal, which requires (i) a specific access procedure and (ii) an electronic XML file.

U.S. Tax: The international tax provisions of the Tax Cuts and Jobs Act

7 November 2017

On November 2, 2017, Kevin Brady (R-TX), Chairman of the House Ways and Means Committee, unveiled his opening bid on comprehensive tax reform - the Tax Cuts and Jobs Act, H.R. 1 (the "Bill").

The key proposals in the bill are business, international tax and individual tax based.

Belgian TP reporting for 2016 can still be submitted by email

31 October 2017

The Belgian tax authorities have confirmed that it remains possible to submit the Belgian TP reporting forms by email, to the Belgian administration’s BEPS13@minfin.fed.be address.

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