Belgium: Action Required for Pillar II Compliance

Si­mi­lar to the le­gal si­tua­tion in Ger­many, the EU re­gu­la­ti­ons for the im­ple­men­ta­tion of the glo­bal mi­ni­mum tax were trans­po­sed into Bel­gian law on 19 De­cem­ber 2023. Mul­ti­na­tio­nal and Bel­gian cor­po­rate groups that ex­ceed the re­ve­nue th­res­hold of 750 mil­lion eu­ros must the­re­fore com­ply with the Bel­gian re­qui­re­ments for Pil­lar II for fis­cal years be­gin­ning af­ter the 30 De­cem­ber 2023.

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The Royal De­cree of 15 May 2024 (publis­hed 29 May 2024) sti­pu­la­tes that com­pa­nies fal­ling un­der the Pil­lar II re­gu­la­ti­ons must ap­ply for a Pil­lar II tax iden­ti­fi­ca­tion num­ber (P2 TIN) with the Bel­gian Tax Aut­ho­ri­ties wi­thin 30 days of the start of the first fis­cal year to which the Pil­lar II re­gu­la­ti­ons ap­ply. For the first year of ap­pli­ca­tion, a 45-day dead­line was es­ta­blis­hed, star­ting with the pu­bli­ca­tion of the Royal De­cree, and thus con­clu­des on 13 July 2024.

In view of this tight dead­line, the Bel­gian tax aut­ho­ri­ties gran­ted an ex­ten­sion un­til 16 Sep­tem­ber 2024 on 2 July 2024. Howe­ver, this only ap­plies if the group of com­pa­nies sub­ject to the glo­bal mi­ni­mum tax does not in­tend to make ad­vance pay­ments on a supp­le­men­tary tax that could arise due to the re­qui­re­ments of the glo­bal mi­ni­mum tax.

In ca­ses of an ul­ti­mate pa­rent com­pany being in Bel­gium or a group com­pany lo­ca­ted in Bel­gium, where the ul­ti­mate pa­rent com­pany is do­mi­ci­led in ano­ther state, they are ob­li­ga­ted to ap­ply for a P2 TIN. The elec­tro­nic ap­pli­ca­tion must be sub­mit­ted and re­cei­ved by the Bel­gian Tax Aut­ho­ri­ties by 13 July 2024 or if the dead­line ex­ten­sion is ap­plica­ble un­til 16 Sep­tem­ber 2024. Pro­vi­ded that all re­qui­red in­for­ma­tion has been sub­mit­ted, the Bel­gian Tax Aut­ho­ri­ties will is­sue a P2 TIN and in­itiate the re­gis­tra­tion of the cor­po­rate group in the Cross­roads Bank for En­ter­pri­ses.

It is im­port­ant to note that ex­ten­sive in­for­ma­tion about the cor­po­rate group is re­qui­red for the ap­pli­ca­tion. The­re­fore, there is also in case of the dead­line ex­ten­sion an ur­gent need to col­lect this in­for­ma­tion to be able to sub­mit the ap­pli­ca­tion on time. The ap­pli­ca­tion is also ne­cessary even if the cor­po­rate group can be­ne­fit from any re­lief mea­su­res in the form of tran­si­tio­nal safe har­bor ru­les, mea­ning that, at least in the in­itial years of ap­ply­ing the Pil­lar II re­gu­la­ti­ons, no tax pay­ments may be due.

Please note: Cor­po­rate groups af­fec­ted by Pil­lar II, with com­pa­nies or es­ta­blish­ments in Bel­gium, should im­me­dia­tely be­gin col­lec­ting the ne­cessary in­for­ma­tion for the ap­pli­ca­tion and com­ply with the ap­pli­ca­tion re­qui­re­ment wi­thin the dead­line.

In case of any ques­ti­ons about the re­qui­red ac­tions in Bel­gium please con­tact us. We also as­sist with the ap­pli­ca­tion pro­cess and, if ne­cessary, in­volve our col­lea­gues at RSM Bel­gium.