On 11 January 2021, a number of selected Belgian taxpayers received a transfer pricing (TP) questionnaires from the tax authority’s special TP audit department. Based on noncompliant TP forms again audit cycles will be launched by the special TP audit department. The companies have a higher risk of being selected for a TP audit where they fail to file the required TP forms, file incomplete or incorrect TP forms, or fail to submit the forms by the required deadline.
A Belgian enterprise required to file a country-by-country (CbC) report and/or a CbC notification when the multinational group’s consolidated revenue exceeds EUR 750 million in the reporting period immediately preceding the last closed reporting period.
A Belgian enterprise that is part of a multinational group must file a master file and a local file where it exceeds one of the following thresholds (on a nonconsolidated basis) in the accounting year immediately preceding the last closed accounting year:
- A balance sheet total of EUR 1 billion;
- Combined operating and financial income of EUR 50 million (excluding nonrecurring income); or
- An annual average number of 100 full-time equivalent employees.
According to Circular No. 2019/C/14, noncompliance with the requirements of TP documentation also may trigger penalties ranging from EUR 1,250 to EUR 25,000.
