The Belgian tax authorities have sent out the first penalty notifications for noncompliance to submit transfer pricing (TP) forms. Generally, TP documentation requirements is mandatory for Belgian entities exceeding the respective thresholds and penalties may apply for noncompliance.

Companies are subject to penalty in the following non-compliance cases:

  • No TP form has been filed
  • An incomplete TP form has been filed
  • Late filing of the TP form

TP Penalties

The administrative penalty for the first infraction without the intention of tax evasion is set at nil. From the second infraction, the penalties for noncompliance with the TP documentation requirements range from EUR 1,250 to EUR 25,000.

However, the Belgian tax authorities allow a period of one month for companies to explain why the TP documentation has not been filed, or has been filed late.