Prepayment system for P2 minimum taxation operational as from 2 September 2024

The Belgian Tax Authorities (i.e., FPS Finance) announced that the prepayment system is operational as from 2 September 2024 (see NL / FR). This means that prepayments for the Domestic Minimum Top-up Tax ((Q)DMTT) and/or the IIR Top-up Tax in Belgium can effectively be made provided that the group is registered for Pillar 2 minimum taxation in Belgium.

The first registration deadline for groups which intend to prepay was 15 July 2024. For other groups, the first deadline has been extended until 16 September 2024 (see Deadline GloBE registration extended - KPMG Belgium). A group in scope of the Belgian Law on minimum taxation will only be able to prepay once it is registered. 

The Belgian Law on minimum taxation introduced a prepayment system for the (Q)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 (for 2024: 12% of the prepaid amount). To be eligible for the maximum bonification, the prepayment must be received in the bank account of FPS Finance at the latest on 20 December 2024. 

The key administrative features of the prepayment system were outlined in the Royal Decree on prepayments of 7 July 2024. The current announcement of the Belgian Tax Authorities explains some important administrative features and technicalities of how to make prepayments.

The announcement explains that prepayments can be made via “MyMinFin, module VA Pillar 2” or bank transfer. When MyMinFin is used, the generation of a prepayment message (via the tab “prepayment request”) will be required in future years, but not yet for prepayments for 2024. When bank transfer is used, the prepayment must be made to the applicable bank account of FPS Finance. There are two separate accounts: one for (Q)DMTT and another for IIR Top-up Tax. Additionally, a system generated structured message is required, whereby the group number (as received following registration of the group in the Belgian Commercial register) must be used. However, it is recommended to make the prepayments from a bank account of a constituent entity, rather than from a group bank account. This enables FPS Finance to identify the entity which made the prepayment and make direct refunds later, if applicable. The Royal Decree on prepayments provides for the presumption that the prepayment made by an entity is made on behalf of the group. 

KPMG can assist you with all compliance aspects of the Pillar 2 minimum taxation in Belgium, including registration, calculation of tax liabilities and filing of returns. Additionally, we can also help you to identify the relevant data points, gather the required data and perform the calculations for both the (Q)DMTT and jurisdictional Top-up tax liabilities (IIR and UTPR). This is especially important because the first filing deadline for the (Q)DMTT in Belgium is 30 November 2025 (i.e., last day of the 11^th month following the fiscal year) and there are differences in the calculation of the ETR for (Q)DMTT and IIR Top-up Tax purposes.

If you have questions or need any assistance, do not hesitate to reach out to your trusted KPMG advisor or contact us.