News
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05.07.2024 - FAQ on the notification form published
We have published an
FAQ (PDF, 338.53 KB) on the notification form on the new “FAQ” page. -
02.07.2024 - Administrative tolerance for the submission term for the notification for the registration in the CBE
The FPS Finance provides an administrative tolerance for groups of multinational enterprises (MNE) and large-scale domestic groups that will not carry out advance payments in 2024 for the domestic top-up tax or the IIR. These groups may submit their notification for registration in the Crossroads Bank for Enterprises (CBE) until 16 September 2024 (included).
This administrative tolerance does not apply to MNE groups and large-scale domestic groups who wish to carry out advance payments in 2024.
- 31.05.2024 - Pillar 2 - Launching the mandatory notification system to MNE groups or large-scale domestic groups
- 29.05.2024 - Pillar 2 - Soon launching the mandatory notification system to groups of MNE or large-scale groups
Context
In October 2021, nearly 140 countries taking part in the Inclusive Framework on Base Erosion and Profit Shifting (BEPS) of the OECD/G20 reached a historic agreement on a detailed plan for international tax reform based on two pillars:
- Pillar One provides for a different distribution of taxable profits and taxation powers between countries for the largest and most profitable multinationals groups.
- Pillar Two contains agreements on a global minimum level of taxation, thus ensuring that large multinational groups always pay at least 15% as effective tax rate on their profits.
Then, in December 2021, the Inclusive Framework on BEPS of the OECD/G20 approved the Global Anti-Base Erosion Model Rules (“GloBE” rules) document (Pillar Two), which the Member States have undertaken to comply with. This model of rules designed to fight against the base erosion at global level should ensure that multinational enterprises (MNEs) with annual consolidated revenue threshold of at least 750 million Euro are liable to an effective tax rate of at least 15% on their profits at jurisdictional level.
To ensure that Pillar Two rules are transposed into national law in the same way across the EU (creating a level playing field) and to avoid any conflict with EU law, the EU issued the Council Directive (EU) 2022/2523 of 14 December 2022on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union. This directive allowed to extend the scope of Pillar Two to large-scale domestic groups.
The directive was transposed into national legislation with the Law of 19 December 2023 on the introduction of a minimum tax for multinational enterprise groups and large-scale domestic groups (Belgian Official Journal of 28.12.2023). This law introduced a minimum tax in Belgium.
Pursuant to the law of 19 December 2023, will be liable to the 15% minimum tax rate: multinational enterprise groups (MNE groups) and large-scale domestic groups with revenue threshold of at least 750 million Euro during at least two of the four tax years preceding the tax year under review. The 15% minimum tax rate is achieved through three various taxation measures: the qualified domestic top-up tax, the IIR top-up tax and the top-up tax for the undertaxed profit rule (UTPR).