The Belgian Tax Authorities granted by administrative tolerance an extension of the notification deadline for P2/GloBE registration for groups that do not intend to prepay, until 16 September 2024 (see NL / FR). The deadline remains unchanged for groups which intend to prepay. This is a welcome extension for many groups that are still in the process of gathering the required information.

Prepayment system

The Belgian Law on minimum taxation introduced a prepayment system for the Domestic Minimum Top-up Tax (DMTT) and the IIR Top-up Tax. Under this system, prepayments trigger bonifications. These bonifications are then deductible against a standard surcharge applied on the Top-up Taxes due (9% for 2024). In 2024, the maximum bonification applies for prepayments made by 20 December 2024.

A group in scope of the Belgian Law on minimum taxation will only be able to prepay once it is registered. The prepayment will be managed through the group’s tax account in the portal of the Belgian Tax Authorities.

FAQ on P2/GloBE registration

Earlier, on 21 June 2024, the Belgian Tax Authorities published an FAQ (NL / FR) on the GloBE registration requirements which were implemented by Royal Decree in May 2024 (see our news item).

Some of the important aspects addressed by the FAQ include:

  1. Deadline: Under the general rule, the notification for the P2/GloBE registration must be submitted within 30 days after the first day of the fiscal year when the group first comes into scope of the Belgian Law on minimum taxation. However, given the newly introduced requirements, the earliest deadline was Saturday 13 July 2024. The FAQ clarified that this deadline is actually Monday, 15 July 2024 (i.e., unless the above referred tolerance applies). Furthermore, as an example, the FAQ elaborates that, when the fiscal year of a group starts on 1 October 2024, the registration deadline is 31 October 2024.

  2. Safe harbour: The notification for the P2/GloBE registration applies regardless of whether a group elects for the application of a safe harbour. The aim of the registration is to identify the group.

  3. Proxy for notification: The proxy template must be signed by all Belgian constituent entities or UPE which appoint(s) another constituent entity or UPE, respectively, to perform the registration. It must be signed by the representative of the entity that has the power to commit the entity.

  4. Ownership structure (Part III of notification form): All Belgian and foreign parent entities must be listed. The information request concerns the entire group structure at parent level and is thus not limited to the Belgian part of the group (i.e., not limited to the part of the group where a Belgian entity is held). If a parent entity is in Belgium, also all entities held by this entity must be listed.

  5. “TIN at the top” (Part III of notification form): For the purposes of the notification form, the TIN at the top is the TIN of the immediate parent entity higher in the chain.

  6. Contact point (Part IV of notification form): This is the constituent entity which has the burden of registration. However, for the individual to be contacted in case of questions about the registration, also a person external to the entity can be indicated (e.g., external advisor).

How can KPMG help you?

KPMG developed a user-friendly tool to help you complying with the notification requirements. We can assist you with both preparing the required data for the notification form (incl. group mapping for GloBE purposes) as well as the XML-file conversion and actual filing. If you have questions or need any assistance, do not hesitate to reach out to your trusted KPMG advisor or contact us.