Belgium’s Financial and Budgetary Committee has adopted draft legislation implementing DAC9, introducing Pillar Two information reporting, automatic exchange mechanisms, revised filing deadlines, and penalties for non-compliance.
Belgium’s Parliament’s Financial and Budgetary Committee adopted the draft legislation implementing DAC9 (Directive 2011/16/EU as amended by Council Directive (EU) 2025/872) on 2 October 2026.
The legislation has a dual purpose: it transposes Council Directive (EU) 2025/872 of 14 April 2025 (DAC9), which updates the rules on administrative cooperation between tax authorities, and amends Belgium’s Minimum Tax Law of 19 December 2023 to integrate automatic exchange mechanisms and related operational rules into the country’s Pillar Two global minimum tax framework.
The draft law will now proceed to the Parliament for debate and a vote.
The key features of the adopted draft legislation are as follows:
Standardised information return structure
The bill sets out detailed definitions and filing obligations for multinational enterprise (MNE) groups submitting Pillar Two information returns.
The return will consist of a general section covering group-wide information, organisational structure, and an overview of the application of the EU Pillar Two rules, together with jurisdictional sections detailing the application of the IIR, UTPR, and QDMTT in each relevant jurisdiction.
Belgian ultimate parent entities (UPEs) or designated filing entities must submit the return electronically through the Federal Public Service Finance portal and provide the required distribution details. If the Belgian tax authorities issue a correction notification, the entity must submit a revised return within one month.
Automatic exchange of information
The draft introduces Chapter 11bis to the 19 December 2023 Law, establishing a framework for the automatic exchange of Pillar Two information between EU Member States.
The general section of the return will be shared with Member States where relevant group entities or the UPE are located, while Member States applying only a QDMTT will receive limited general information. Jurisdictional sections will be exchanged only with Member States that have taxing rights under Directive (EU) 2022/2523.
The Belgian competent authority must exchange the information within three months of the filing deadline or actual receipt, with the first automatic exchange scheduled for 1 December 2026 at the earliest. Information will be transmitted in standardised EU electronic formats and retained for seven years, with possible extensions where litigation is ongoing.
Overhauled penalty and fines framework
The adoption establishes strict administrative penalties for non-compliance, derogating from standard income tax penalty rules:
- Incomplete or inaccurate returns: Fines range from EUR 1,250 to EUR 62,500 (doubled to EUR 2,500 to EUR 125,000 for fraudulent intent or intent to harm).
- Non-filing or late filing: Fines range from EUR 2,500 to EUR 125,000 (doubled to EUR 5,000 to EUR 250,000 for fraudulent intent).
- Failure to pay top-up tax share: Penalties range from EUR 2,500 to EUR 125,000 (EUR 5,000 to EUR 250,000 if intentional).
- Relief mechanisms: Fines may be waived in the absence of bad faith. In the presence of mitigating circumstances, a court can reduce fines below statutory minimums, but not below 40% of the prescribed scale.
Tax return filing deadlines
For standard fiscal years, Pillar Two tax returns must be filed by the last day of the 15th month following the end of the reporting fiscal year.
For fiscal years starting on or before 31 December 2024, a transitional extension allows filing by the last day of the 18th month following fiscal year-end.
Entry into force
The enacted law will take effect immediately on the day of its publication in the Belgian Official Gazette.
Earlier, Belgium’s Finance Minister submitted draft legislation to the Parliament on 10 September 2026 to implement DAC9 (Directive (EU) 2025/872) into Belgian tax law and update the country’s rules on administrative cooperation.
