Belgium: Action Required for Pillar II Compliance
If a multinational or Belgian group is subject to the regulations of the global minimum tax in Belgium (Pillar II), an electronic registration application must be submitted to the Belgian Tax Authorities by no later than 16 September 2024, in certain cases, however, already until 13 July 2024.
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.
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.