Attention: new notification requirement under minimum tax (Pillar 2)
by Febe Louage and Ana Topircean
Since January 1, 2024, a minimum tax for multinational enterprise groups (MNE groups) and large domestic groups has been introduced in Belgium. This is the implementation of the OECD/G20 recommendations and European Directive 2022/2523 into the Belgian legislation (Pillar 2). The minimum tax of 15% applies to groups of multinational enterprises and large domestic groups with an annual turnover of at least 750 million euros in at least 2 of the 4 reporting years immediately preceding the tested reporting year.
Identification number
To meet their obligations in Belgium (advance payments, notifications, tax returns), these groups must apply for an identification number from the FPS Finance. This identification number is assigned by the Crossroads Bank for Enterprises (CBE/KBO).
The FPS Finance will handle this registration, and the group will need to provide certain information via a notification form on MyMinfin.
If the ultimate parent entity responsible for preparing the consolidated financial statements of the group is a foreign entity, a company number will also be assigned to this entity.
Notification form
The form must include information related to the consolidated financial reporting and the ownership structure of the group.
The notification form and a free translation into English can be downloaded via the following links:
ENG: https://financien.belgium.be/sites/default/files/downloads/169-pillar-2-visual-notification-form.pdf
Which entity must submit the notification form?
The notification must be carried out by the ultimate parent entity established in Belgium. If multiple ultimate parent entities are established in Belgium, one of them will be designated as agent by the other ultimate parent entities established in Belgium, using the appropriate authorization form.
If no ultimate parent entities are established in Belgium, the group entity established in Belgium must carry out the notification. If there are multiple Belgian group entities, an agent will again be designated.
Deadline
The notification must be carried out within 30 days of the start of the first reporting year of the group to which the minimum tax applies. For groups that have already started, the deadline is July 13, 2024. This deadline is very tight, as in addition to preparing the form, it is often necessary to designate an agent and apply for a BIS number.
Latest update
On 02/07/2023, the FPS Finance announced an administrative tolerance for groups that do not make advance payments of domestic top-up tax or IIR (Income Inclusion Rule) top-up tax in 2024. These groups have until 16 September 2024 to complete their registration with the Crossroads Bank for Enterprises (CBE).
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Febe Louage
Manager International febe.louage@vdl.be
Ana Topircean
Advisor International ana.topircean@vdl.be
Disclaimer
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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