Filing due date for FY2017 Belgian Local File is approaching

Starting from financial year 2017, more detailed information will have to be disclosed in the Belgian Local File, including amounts of intercompany transactions. The reporting approach may be considered as more strict compared to OECD guidelines. A timely take-off for the update of the FY2017 Local File report and form is therefore highly recommended. Our transfer pricing experts can of course assist you with the update of the Local File, the administrative process as well as meeting the filing requirements.

Qualifying Belgian group entities

In the context of BEPS action 13 of the OECD, the Belgian legislator has introduced mandatory transfer pricing documentation requirements for Belgian group entities. In this respect, each qualifying Belgian group entity (company, legal branches and fiscal permanent establishments) which is member of an international group is required to file a Master File (specific transfer pricing form 275 MF) as well as a Local File (form 275 LF).

The Master and Local Files have to be submitted to the Belgian tax authorities as an annex to the Belgian corporate tax return.

A qualifying Belgian group entity is subject to mandatory filing if only one of following criteria is exceeded in its statutory financial accounts (on a ‘standalone’ basis) in the prior year:

  • Gross operating and financial income exceeding EUR 50 million (excluding non-recurring items);
  • Balance sheet total exceeding EUR 1 billion;
  • Average annual number of employees of 100 in full time equivalents (‘FTEs’).
Legal filing due date

Local file

The Local File (form 275 LF) should list information on the local entity, containing general information regarding the activities in Belgium and detailed information of cross border transactions per business unit of the Belgian entity. The Belgian Local File content is fully in line with OECD BEPS 13 requirements.

The general due date for filing the corporate income tax return has been set on 27 September 2018. Note that the exact due date can still differ depending on the company’s closing date of the accounting year and the month in which the general shareholder meeting takes place.

Master file

The Master File (form 275 MF) contains an overview of the multinational group, including the nature of its business operations, transfer pricing policy, its intangible assets, intercompany financial activities, consolidated financial and tax position of the group.

The Master File form should be filed within a period of 12 months following the last day of the Belgian entity’s reporting period. For a Belgian entity with a financial year ending on 31 December 2017, the due date has therefore been set on 31 December 2018.

Also the annual CBC reporting notification form (275 CBC NOT) will have to be filed at the latest by 31 December 2018, for a MNE group with a financial year ending on 31 December 2018.

Jonas Derycke – Director Tax Van Havermaet International

Rudolf Sinx – Managing Director Quantera Global