All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

Draft law provides for tax haven reporting

Recently new draft tax law provisions have been filed with the Belgian Parliament (Parl St, Kamer, 2009-2010, nr 52-2278/001) for further discussion.

Recently new draft tax law provisions have been filed with the Belgian Parliament (Parl St, Kamer, 2009-2010, nr 52-2278/001) for further discussion.

This draft law includes this provision: As from tax assessment year 2010, for payments made as from 1 January 2010, companies subject to Belgian resident or nonresident corporate income tax, should report all material payments made, directly or indirectly, to persons located in tax havens. Material payments are considered to be payments of €100,000 or more made during a given tax assessment year.

Within the context of this new (draft) provision, tax havens are considered to be

  • Countries which have been identified by the OECD as not sufficiently cooperative in the international exchange of information; and

  • Countries which will appear on a list (still to be drafted by the Belgian tax authorities and to be processed under the form of a royal decree) of countries with no or low (less than 10%) taxes.

Payments made, directly or indirectly, to such tax havens and which have not been reported, will not be accepted as deductible business expenses. The same will apply for the payments which have been appropriately reported, but for which the taxpayer concerned has not provided sufficient proof that these payments have been made in the context of real and sincere transactions and with persons other than artificial constructions. The latter proof can be provided by all means of proof as defined in the Belgian Income Tax Code.

Furthermore it should be noted that the existing tax on secret commissions (309%) can also be levied on these payments under the conditions of the existing law (article 219 of the Belgium Income Tax Code)

Dirk Van Stappen (dvanstappen@kpmg.com), leader of KPMG's Belgian transfer pricing practice



more across site & bottom lb ros

More from across our site

The UN’s decision to seek a leadership role in global tax policy could be a crucial turning point but won’t be the end of the OECD, say tax experts.
The UN may be set to assume a global role in tax policy that would rival the OECD, while automakers lobby the US to change its tax rules on Chinese materials.
Companies including Valentino and EveryMatrix say the early adoption of EU public CbCR rules could boost transparency of local and foreign MNEs, despite the short notice.
ITR invites tax firms, in-house teams, and tax professionals to make submissions for the 2023 ITR Tax Awards in Asia-Pacific, Europe Middle East & Africa, and the Americas.
Tax authorities and customs are failing multinationals by creating uncertainty with contradictory assessment and guidance, say in-house tax directors.
The CJEU said the General Court erred in law when it ruled that both companies benefitted from Italian state aid.
An OECD report reveals multinationals have continued to shift profits to low-tax jurisdictions, reinforcing the case for strong multilateral action in response.
The UK government announced plans to increase taxes on oil and gas profits, while the Irish government considers its next move on tax reform.
War and COVID have highlighted companies’ unpreparedness to deal with sudden geo-political changes, say TP specialists.
A source who has seen the draft law said it brings clarity on intangibles and other areas of TP including tax planning.