In October 2021, the nearly 140 countries of the OECD/G20 Inclusive Framework ('IF') on Base Erosion and Profit Shifting (BEPS) reached a historic agreement on a detailed plan for international tax reform based on two pillars:

• Pillar 1 regulates a different allocation of taxable profits and tax duties between countries for the largest and most profitable multinationals.
• Pillar 2 contains agreements on a global minimum level of taxation, thus ensuring that large multinationals always pay a minimum effective tax rate of 15% on their profits.

Then, in December 2021, the OECD/G20 IF on BEPS adopted the Global Anti-Base Erosion Model Rules ('GloBE' rules) (Pillar 2) document, which was adopted by the member states. These model rules to combat global base erosion should ensure that multinational enterprises (MNE) with a minimum annual consolidated turnover of €750 million are subject to a minimum effective tax rate of 15% on their profits at jurisdictional level.

In order to ensure that Pillar 2 rules are transposed into domestic law in the same way within the EU (creating a level playing field) and to avoid conflict with European law, the EU issued Council Directive (EU) 2022/2523) of 14 December 2022 on ensuring a global minimum level of taxation for multinational enterprise groups and large domestic groups in the Union. This directive has extended the scope of Pillar 2 to include large domestic groups.

The directive was transposed into national law with the law of 19 December 2023 introducing a minimum tax for multinational companies and large domestic groups (Belgian Official Journal 28/12/2023). This introduced a minimum tax at the Belgian level.

With the law of 19 December 2023, are subject to the minimum tax rate of 15%: multinational enterprise groups (MNE groups) and large domestic groups with annual turnover of at least €750 million in two or more of the four reporting years preceding the reporting year tested. The minimum tax rate of 15% is achieved through three different levy measures: the qualified domestic minimum top-up tax (QDMTT additional taxation), the qualified income inclusion rule (IIR additional taxation) and the qualified undertaxed profits rule (UTPR additional taxation).

Multinational enterprise groups and large-scale national groups subject to the minimum tax for multinational enterprise groups and large-scale national groups, introduced by the law of 19 December 2023, are registered with the Crossroads Bank for Enterprises (CBE).

In order to be able to register with the CBE, the Multinational enterprise group or the large-scale national group must notify the FPS Finance using a notification form available on MyMinfin (Mes outils professionnels > Pilier 2).

Notification of a group of MNE or a large-scale national group must be made no later than 30 days after the start of the tax year for which the group of MNE or the large-scale national group falls within the scope of the law of 19 December 2023.

However, in order to give those who have already started or will soon be starting their first tax year enough time to collect the information requested, the notification period will in any case be granted till 45 days after the publication of the Royal Decree of 15 May 2024 in the Belgian Official Journal.

The notification must be made:

• where a single ultimate parent entity is established in Belgium: by that single ultimate parent entity
• where several ultimate parent entities are established in Belgium: by the ultimate parent entity designated as the authorised representative
• where there is no ultimate parent entity and only one constituent entity is established in Belgium: by that single constituent entity
• where there is no ultimate parent entity and several constituent entities are established in Belgium: by the constituent entity designated as authorised representative

The mandate must be given on a form. This form is digitally signed and submitted at the same time as the notification form.

If the notification form mentions all necessary information, the FPS Finance will register the MNE group or the large-scale national group with the CBE. The group's company number will then be sent by e-mail to the entity that notified the group.

You can find more information about the registration notification at the CBE as well as contact details for assistance in the event of a problem on the Pillar 2 e-service page.

Multinational enterprise groups (MNEs) and large-scale domestic groups subject to the minimum tax for multinational enterprise groups and large-scale domestic groups and effectively liable to pay an amount of domestic top-up tax (QDMTT) and/or the qualified income inclusion rule (IIR) can make advance payments to avoid tax increase.

All information on Pillar 2 can be found on the website of the OECD.

• Model GloBE rules
• Commentary to the GloBE rules
• Administrative Guidances
  • Administrative Guidance - Third set (18.12.2023)
  • Administrative Guidance - Second set (17.07.2023)
  • Administrative Guidance - First set (02.02.2023)
• GloBE information return
• Safe Harbours and Penalty Relief
• Examples
• Implementation Handbook
• Summary: Pillar Two Model Rules in a nutshell 
• Fact sheets 
• FAQ

• Council Directive (EU) 2022/2523 of 14 December 2022 on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union
• Frequently asked questions on the Pillar 2 Directive

• Wet van 12 mei 2024 houdende de diverse fiscale bepalingen
  Loi du 12 mai 2024 portant des dispositions fiscales diverses
• Wet van 19 december 2023 houdende de invoering van een minimumbelasting voor multinationale ondernemingen en omvangrijke binnenlandse groepen
  Loi du 19 décembre 2023 concernant l'introduction d'un impôt minimum pour les groupes d'entreprises multinationales et les groupes nationaux de grand envergure
• Koninklijk besluit van 15 mei 2024 tot uitvoering van artikel 2, § 3, van de wet van 19 december 2023 houdende de invoering van een minimumbelasting voor multinationale ondernemingen en omvangrijke binnenlandse groepen
  Arrêté royal du 15 mai 2024 portant exécution de l'article 2, § 3, de la loi du 19 décembre 2023 portant l'introduction d'un impôt minimum pour les groupes d'entreprises multinationales et les groupes nationaux de grande envergure
• Besluit van de Administrateur-generaal van de Algemene Administratie van de Fiscaliteit van 18 januari 2024 tot aanduiding van de dienst waaraan de vragen inzake de toepassing van de wet van 19 december houdende de invoering van een minimumbelasting voor multinationale ondernemingen en omvangrijke binnenlandse groepen worden gericht
  Arrêté de l'Administrateur général de l'Administration générale du 18 janvier 2024 de la Fiscalité désignant le service auquel sont adressées les questions relatives à l'application de la loi du 19 décembre 2023 portant l'introduction d'un impôt minimum pour les groupes d'entreprises multinationales et les groupes nationaux de grande envergure