In the dynamic landscape of Transfer Pricing (“TP”), one constant persists: the annual launch of TP audits by the Belgian tax authorities (“BTA”), typically marked by the issuance of TP-related information requests to a wide range of Belgian taxpayers at the start of each year.
While the 2026 audit wave began in January, recent trends reveal that these initial requests are increasingly supplemented by additional information demands throughout the year. This evolving approach underscores the importance for Belgian companies—whether multinational enterprises or small and medium-sized businesses—to remain vigilant and well-prepared for TP audits at any time.
Several clients have recently received the standard TP questionnaire from the BTA’s Transfer Pricing Cell, comprising 32 questions and accompanied by an invitation to a prefiling meeting. This proactive engagement reflects the BTA’s growing preference for early dialogue with taxpayers, allowing for a deeper understanding of business operations and TP policies before the formal audit process begins.
The standard questionnaire aims at gathering comprehensive insights into the group’s daily activities and intercompany transactions.
However, given the amount of information already provided to the Belgian tax authorities through the Local File Forms and Master File Forms, we observe questionnaires now featuring tailored questions based on submitted TP documentation and heightened scrutiny of specific areas such as intercompany financing.
Furthermore, it has been observed that initial TP audits may expand to cover other tax domains—including corporate income tax and VAT—as the process unfolds. This trend is particularly evident in sectors like financial services, where the BTA may issue sub-questionnaires to examine each tax area in detail.
Additionally, some taxpayers have received questionnaires from general corporate tax inspectors, featuring numerous TP-related questions. This reflects a coordinated, cross-departmental approach within the BTA, further intensifying the scope and complexity of audits.
A clear shift towards group-wide audits is emerging, with some clients facing simultaneous audits across all Belgian entities within their group. These types of audits are increasingly comprehensive, encompassing TP, VAT, and corporate income tax in a single review.
A notable development in TP audits is the integration of questions relating to personal tax, permanent establishment (PE), withholding taxes, and beneficial ownership. These topics are now regularly included in TP questionnaires, indicating a more holistic audit methodology. The involvement of multiple tax departments within the BTA has led to broader information requests and scrutiny of non-TP matters.
Taxpayers should be prepared to address these areas and ensure that their TP documentation aligns with positions taken on beneficial ownership, PE status, and withholding tax compliance.
In line with last year, we observe specific questions being included on the way transfer pricing is being implemented in the ERP systems. A robust operational transfer pricing system becomes therefore increasingly important, given the increased level of details requested by the tax authorities.
The latest trends in TP audits highlight the critical need for Belgian taxpayers to be thoroughly prepared. This entails having a robust, consistently implemented TP policy, supported by comprehensive documentation and analysis.
Given the expanding scope of audits and the integration of new tax topics, it is essential for taxpayers to ensure that their documentation and internal processes are both resilient and adaptable to the BTA’s evolving expectations.
