Taxable persons often incur foreign VAT during an accounting year. This foreign VAT cannot be recovered via the reporting in the periodic Belgian VAT return but is to be recovered via the so-called 8th Directive VAT refund procedure.
The transfer pricing documentation obligation was introduced by the Program Law of 1 July 2016 and is in line with the three-tiered approach (country-by-country report, master file and local file) of the BEPS (Base Erosion and Profit Shifting) Action 13 project. These obligations are required for accounting periods beginning on
1 January 2016.
On 28 February 2019, the Belgian Parliament approved the draft law introducing the new Code of Companies and Associations. The Law of 23 March 2019, introducing this substantial reform of Belgian company and association law, has been published in the Belgian Official Gazette on 4 April 2019.
Each years, companies have to report on individual forms 281.50 the amount of commissions, brokerage, fees, trade rebates, vacation allowances, fees, gratuities, allowances or benefits in kind paid or attributed during the year and which are considered as taxable professional income for the beneficiary.
In the Tax Insight of August 2018, we already mentioned the introduction of a reporting and withholding obligation in case foreign group companies grant shares and benefits in kind to employees of the Belgian subsidiary.
On 4 April 2019, the Chamber of Representatives adopted the proposal eliminating the separate taxation of 5% for non-compliance with the minimum director’s fee condition.
Article 219quinquies BITC92 would therefore be retroactively removed from the Belgian Income Tax Code as if the separate taxation of 5% never existed.
As a “no-deal” Brexit becomes a more and more realistic possibility, the Belgian VAT Authorities have announced a transitional regime regarding the change from a “direct VAT registration” into a VAT registration via the appointment of an individual fiscal representative.
The deadline for the first submissions by Belgian companies, (international) nonprofit organizations, foundations and trusts of information concerning their beneficial owner(s) to the UBO-Register (“Central register of ultimate beneficial owners”) has been extended.
The deadline has been postponed from 31 March to 31 September 2019.
Most likely, the UK will leave the EU without a deal on 29 March 2019, at 11pm GMT.
Although there is still a lot of uncertainty, we hereby provide you with some action points which should be taken before this date (in any event).