by Stephanie Vanmarcke
Belgian companies are required to report payments to tax havens in their Belgian corporate tax return if these exceed EUR 100,000 in value. In their circular of 1 September 2020, the tax authorities expanded this reporting obligation to include Malta and Turkey.
The special reporting obligation applies to countries that fail to effectively or substantially implement standards for the exchange of information. The OECD evaluates each country on an individual basis. A country is identified as compliant, largely compliant, partially compliant or non-compliant. Before 1 September, the term ‘tax haven’ applied solely to non-compliant countries. According to the authorities’ new position, this category now also includes partially compliant countries. This means the special reporting obligation has been expanded to countries such as Turkey and Malta.
For OECD to identify a country as a tax haven, there are two conditions to be fulfilled:
The reporting obligation applies to payments by Belgian companies under the following conditions only:
If both these conditions apply, you must report the payments using form 275F. You must subsequently include this form in your corporate or non-resident tax return. Failure to file a special report may incur an administrative penalty.
In our opinions, we rely on current legislation, interpretations and legal doctrine. This does not prevent the administration from disputing them or from changing existing interpretations.
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