Belgium adopts the application of Amount B to “Covered Jurisdictions” only

On 19 March 2026, the Circular 2026/C/45 (“Circular”) was published in Belgium, introducing the OECD Pillar One Amount B guidance, as set out in the Inclusive Framework on BEPS report of 19 February 2024 (“OECD Amount B guidance”).

While the rules were designed with clear simplification objectives, their practical application seem rather limited for the moment, and not without complexity. 

It will be important to closely follow-up how other jurisdictions will position themselves. It can already be noted that the US seems to be a frontrunner in this respect.

The Circular 2026/C/45 dd. 19 March 2026 confirms that Belgium generally adopts OECD Amount B guidance as part of local TP rules, with the ultimate goal to increase legal certainty and reduce compliance burden for baseline distributors. This Circular should be considered as an Addendum to the broader Circular 2020/C/35 with guidance on transfer pricing for MNEs and the tax administration in Belgium.

The provisions of the Circular 2026/C/45 take effect for fiscal years starting on or after 1 January 2025.

General purpose and scope of the Circular mirror the OECD scope, explicitly referencing qualifying transactions (explicitly detailing marketing, distribution, and trading agents), exclusions, and covered jurisdictions.

In terms of TP methodology, the transactional net margin method (“TNMM”) is reaffirmed as default, with the comparable uncontrolled price (“CUP”) method permitted if TNMM is unsuitable. For the pricing matrix, the Circular explicitly references Table 5.1 and cross-checks from the OECD Amount B guidance, allowing +/- 0,5% flexibility for return on sales percentages. The update of the pricing matrix is also foreseen for every 5 years, with interim reviews if market changes.

Important to note is that the Amount B guidance (does not apply for baseline distribution activities performed in Belgium.

It should be noted that based on Circular the “covered jurisdictions” comprise the jurisdictions that make a political commitment in favour of Amount B (such jurisdictions are published on the OECD website and will be reviewed every 5 years). This list currently mainly includes developing countries only, but will evolve over time. To be noted that Brazil is also included in the list of covered countries.

For these jurisdictions, Belgium respects the result obtained within the in-scope transactions and dealings – under condition that the simplified approach is applied correctly in the foreign jurisdiction and a double tax treaty (“DTT”) exists with Belgium.

Within the framework of strategic considerations, the Belgian administration also reconfirmed that the adjustments will be allowed during the Mutual Agreement Procedure (“MAP”)/Arbitration with Belgium only if counterparty is a covered jurisdiction with a DTT with Belgium in place.

Proactive MNE groups already taking the OECD Amount B guidance into account within their TP models may find opportunities arising from the published Circular in Belgium, including clear next steps – namely:

• Policy alignment: identifying key jurisdictions and transactions that may benefit from the simplified and streamlined approach – including a cross-check of the availability of DTTs with Belgium;
• Data readiness check: ensuring ERP systems and tax technology solutions can capture and reconcile the necessary data points (including quantitative checks, factor intensity parameters etc.) – to balance operational efficiency with TP outcomes; and
• Governance: establishing clear roles, responsibilities, and controls across tax and finance functions – to reduce compliance burdens and enhance transparency and reliability of the simplified processes.