During June 2016, Belgium has introduced mandatory transfer pricing documentation and country-by-country (CbC) reporting requirements in accordance with Base Erosion and Profit Shifting (BEPS) Action 13 of the Organisation for Economic Co-operation and Development (OECD). The requirements apply as of financial years starting on or after 1 January 2016. Through recently issued Royal Decrees, the specific forms and filing instructions have now been issued.
Master file
The master file form (new Form 275.MF) should be filed yearly with the Belgian tax authorities within 12 months after the end of the financial year of the group. For groups with a financial year ending on 31 December 2016, the first deadline is 31 December 2017. The information required in this form is in accordance with the OECD guidance on BEPS Action 13. Dutch and French version of the form
Local file
The local file form (new Form 275.LF) should be filed yearly as an attachment to the income tax return. For Belgian entities with a financial year ending on 31 December 2016, this means that the local file form should likely be filed in the course of September 2017. Supporting documents can be attached to the form. Dutch and French version of the form
CbC reporting
According to Law of July 1, 2016, each constituent entity, part of a MNE which falls under the Country-by-Country requirements, should notify the Belgian tax authorities before the end of the Reporting Period whether the Belgian entity is the filing entity, and if not, who will be the filing entity within the group and where applicable, reasons why the Country-by-Country reporting filing will not be performed by the Ultimate Parent Entity or a Surrogate Parent Entity.
The CbC notification should in principle be filed with the Belgian tax authorities by the end of the financial year of the group. However, the first deadline for filing the notification form has been extended to 30 September 2017. In anticipation of an electronic filing procedure, the notification can be filed by mail or by e-mail. Dutch and French version of the notification form