Notification for Country-by-Country Reporting (CbCR) no longer required on an annual basis
In order to reduce the administrative burden for Belgian entities, the CbCR notification form should not be filed annually anymore, but only if the information to be reported changes.
Notification requirement for Belgian entities of a multinational group that needs to file a Country-by-Country Report
Following BEPS action 13, Belgian resident parent companies (or the Belgian company that is appointed as the surrogate ultimate parent company) of multinational groups with consolidated gross revenue of € 750 million must file a CbCR in one of the three official languages or in English. In certain specific circumstances the Belgian entity of a qualifying multinational group will be obliged to file a CbCR although it is not the parent company or the surrogate ultimate parent company. The report includes amongst others information regarding the income, taxes paid and the business activities of the group in each country.
In addition, each Belgian entity of a qualifying group will need to notify to the Belgian tax authorities that it is either the ultimate or surrogate group company. If it is neither, it must report the identity and the tax residence of the group entity that will comply with the CbC reporting requirements.
Timing of the notification formalities
Until now, the notification had to be done annually at the latest on the last day of the financial year (‘reporting period’) of the group by means of the online tool of the tax authorities.
This annual notification requirement has been amended by the law of 2 May 2019 that was published in the Belgian Official Gazette of 15 May 2019. In order to reduce the administrative burden for Belgian entities, it is foreseen that the notification by the Belgian group entity should only occur to the extent that the information differs from that provided in respect of previous reporting periods. In such case, a new notification should be done in a timely manner in order to avoid administrative fines.
The Belgian legislator announced that the new measure will be evaluated three years after the entry into force in order to determine whether or not it will lead to incorrect declarations. If considered necessary, it may be reversed.
Entry into force
The new measure will enter into force on 25 May 2019 and will apply to reporting periods ending on 31 December 2019 or later.
Natalie ReypensPartner Attorney at Law
Natalie Reypens is a member of the Loyens & Loeff International Tax Services Practice Group and heads the Belgian Transfer Pricing Team. She is a partner in our Brussels office. She focuses on corporate and international tax law.T: +32 2 743 43 37 E: firstname.lastname@example.org
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