Corporate Tax Alerts
News you can count on
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.
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.
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.