A Royal Decree setting the scale of the administrative fines for the infringement of transfer pricing documentation requirements has been published in the Belgian Official Gazette of July 9, 2018.
Taxpayers that fail to satisfy the reporting and filing requirements for transfer pricing documentation will be subject to administrative fines ranging from 1.250 EUR to 25.000 EUR, as from the second infringement (article 445, §3 Belgian Income Tax Code 1992 (“BITC”).
The Royal Decree clarifies the above and introduces the scale of the administrative fines that will be applied.
As stated in the table below, the amount of the fine will depend on the type of the infringement and the recurrence thereof.
|Type of the infringement||EUR|
|Infringement due to circumstances beyond the taxpayer’s control||0|
|Infringement not attributable to bad faith or intention of tax evasion :|
|Infringement due to bad faith or intention of tax evasion (including the filing of voluntarily incomplete or inaccurate forms)|
In 2016, Belgium implemented the OECD’s BEPS Action 13 on transfer pricing documentation requiring companies that meet certain thresholds to file specific forms, i.e. Master File, Local File, Country-by-Country Report, Country-by-Country Reporting Notification (cfr. articles 311/1 to 321/6, introduced by law of July 1, 2016).
For more information on the transfer pricing documentation requirements, reference is made to our previous E-tax flashes, dated May 17, 2016, July 6, 2016 and December 2, 2016. Those mainly provide information on the following matters:
Should you require further assistance in this matter, please contact your local KPMG tax adviser.
© 2019 KPMG Tax and Legal Advisers, a Belgian Civil Cooperative Company with Limited Liability (burg. CVBA/SCRL civile) and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.