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• 24.09.2024 - Royal decrees of 16 June 2024 - Updated transfer pricing documentation requirements in Belgium

  On 15 July 2024, three royal decrees (dated 16 June 2024) were published in the Belgian Official Gazette. These decrees update the Belgian Transfer Pricing (“TP”) documentation requirements. The aim is enhancing transparency at a national and an international level, as well as clarifying interpretation. The changes apply to qualifying taxpayers for financial years starting on or after 1 January 2025.

  The royal decrees replace those issued on 28 October 2016 concerning TP documentation (article 321/4 §4, article 321/5 §4 and article 321/2 §5 of the Belgian Income Tax Code).

  The modifications include:

  • Concerning the Master File (275.MF):
    • a more detailed (4-step) value chain and functional analysis with a particular focus on profit allocation (step 3) and alignment with TP outcomes (step 4)
    • a (6-step) description of the analytical framework regarding DEMPE functions (“Development, Enhancement, Maintenance, Protection, Exploitation”) of intangible assets
    • information on hard-to-value intangibles (“HTVI”) that were transferred or used during the reporting period
    • minimum standards for the information to be reported on the MNE group's general TP policy related to financing arrangements
  • Concerning the Local File (275.LF):
    • a breakdown per country of intercompany transactions for each business unit with cross-border transactions exceeding 1 million euros
    • submission of the following attachments in a readable PDF file, while these documents previously only needed to be indicated:
      • available TP documentation, including methodologies or principles applied, agreements and/or (benchmarking) studies, framework agreements and/or model contracts of intercompany agreements
      • contribution agreements, advance pricing agreements (“APAs”), rulings and in-house (re)insurance policies
    • the Tax Identification Number (“TIN”) of the competitors of the Belgian entity's (and its foreign permanent establishments (“PE”), if any) must be provided
    • in the section concerning the Belgian organisational structure (A2 and A3), indication of the TIN number instead of the option of indicating either the company number or the TIN number
    • in the section concerning cost contribution agreements, advance pricing agreements, rulings and in-house (re)insurance policies (B12), indication of the country code and TIN number instead of the company number
  • Concerning the CbC notification (275.CBC.NOT):
    • indication of whether the submitted form is a first CbC notification, a modification of the previous CbC notification, or a termination of the notification obligation (due to no longer being part of an MNE group)

  Royal decrees (available in French and Dutch):

  • Arrêté royal du 16 juin 2024 remplaçant l'arrêté royal du 28 octobre 2016 fixant le modèle de formulaire tel que visé à l'article 321/2, § 5, du code des impôts sur les revenus 1992 permettant, en matière de prix de transfert, l'obligation de notification de la déclaration pays par pays
  • Arrêté royal du 16 juin 2024 remplaçant l'arrêté royal du 28 octobre 2016 fixant le modèle de formulaire tel que visé à l'article 321/4, § 4, du code des impôts sur les revenus 1992 permettant, en matière de prix de transfert, le dépôt du fichier principal donnant une vue d'ensemble du groupe
  • Arrêté royal du 16 juin 2024 remplaçant l'arrête royal du 28 octobre 2016 fixant le modèle de formulaire tel que visé à l'article 321/5, § 4, du Code des impôts sur les revenus 1992 permettant, en matière de prix de transfert, le dépôt du fichier local ainsi que des informations détaillées concernant l'analyse des prix de transfert des transactions entre entités locales et les entités étrangères du groupe multinational