The Belgian tax authority recently announced a new notification requirement for Belgian Ultimate Parent Entities (UPEs) and Belgian Constituent Entities (CEs) that are in scope for Pillar 2.
The announcement requires the UPE or CE (when no UPE is present in Belgium) to either file the notification or designate another Belgian related party within the UPE’s group to file the notification form. The notification must be filed within 30 days after the start of the year for which the group falls within the scope of the law that was enacted on Dec. 19, 2023. A relief period of 45 days from the publication of the Royal Decree (May 29, 2024) is available to companies whose year has already begun. Companies eligible for the relief period must file their notification by July 13, 2024.
The filing entity must register at the Crossroads Bank for Enterprises via their notification form. Additionally, a specific mandate form is available for all other Belgian CEs and UPEs to complete in order to designate the notifying entity.
The notification is comprised of four parts:
- Identification of the multinational enterprise (MNE) group and UPE
- Description of the consolidated financial statements
- Overview of the ownership structure
- Contact details of the notifying entity
Grant Thornton Insight:
Although Belgium has enacted the earliest notification requirement for 2024, other countries may follow suit with their own notification and reporting requirements for CEs. For example, UK companies must register with HMRC no later than 6 months after the end of the group’s first accounting period that started on or after Dec. 31, 2023 (June 30, 2025, for calendar year companies). The OECD model rules do not contain any notification requirements but do allow for each jurisdiction to implement the model rules by any means necessary.
What now?
Any MNE group with Belgian operations that is in scope for Pillar 2 should consider their requirement to file the notification form (and mandate form, when applicable) with the local authorities by July 13, 2024 (or within 30 days of their financial year start, once in scope for Pillar 2). Grant Thornton Belgium can assist with information gathering, preparation and filing of the notification.
Pillar 2 background
On Jan. 1, 2024, a large number of countries introduced the minimum tax rules of Pillar 2. The rules apply to groups with a turnover of more than €750 million. It includes both potential top-up taxes when the effective tax rate in a jurisdiction reduces to below 15% and a documentation obligation for groups in scope. Many more countries plan to introduce Pillar 2 in the future. You can read more about the latest Pillar 2 developments here, here, and here.
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