Pillar Two GloBE registration requirements in Belgium

Belgium adopted a Law on minimum taxation in December 2023 which is applicable for in-scope groups for fiscal years starting after 31 December 2023. A registration requirement has also recently been introduced for these groups to acquire a unique registration number in the Belgian Commercial Register for compliance purposes. KPMG Belgium published a news release and update on these registration requirements which provide more details.

On 29 May 2024, the Royal Decree for the implementation of the registration requirements was published in the Belgian Official Gazette.

The general registration deadline is 30 days after the start of the fiscal year for which the multi-national enterprise (MNE) or large-scale domestic group comes into scope of the Belgium Law on minimum taxation. However, as the legislation was published after the 30 day deadline had already passed for many groups, and to allow time to gather the required information, the deadline for the first registration has now been confirmed as 13 July 2024.

In summary the key points are:

• As a result of Belgium’s transposition of the EU Directive 2022/2523 of 15 December 2022 on ensuring a global minimum level of taxation for MNE groups and large-scale domestic groups in the EU (based on the OECD’s Global Anti-Base Erosion Rules (GloBE)), there is a registration requirement for groups within the scope of the Belgian Law on minimum taxation (this may include, for example, UK headed groups which contain a Belgian constituent entity);
• The deadline is Saturday, 13 July 2024, if this is later than the 30 day deadline counted from the first day of the fiscal year when the group comes into scope of the Belgian Law on minimum taxation;
• Otherwise, it is 30 days after the start of the fiscal year for which the group comes into scope;
• There is a specific form for the notification for registration and the registration template issued by the tax authority requires details of the MNE group, particulars related to their consolidated financial statements including currency, period, and accounting standard and certain contact details;
• Importantly there is a requirement to provide details (including the GloBE classification status for each entity listed) of the ownership structure (including all parent-type entities wherever located), all entities below a Belgium Parent Entity, and any other Belgium entities. These details will be based on the position at the beginning of the in scope fiscal year, i.e.,1 January 2024 for a calendar year commencement;
• Registration will be required in a specific format noted in the KPMG Belgium news release; and
• At the time of writing details of penalties for failure to comply, if any, had not been published.

One of the reasons for the short registration deadline is that there is an advance payment mechanism in the Belgian Law on minimum taxation, under which Income Inclusion Rule (IIR) and/or Domestic Minimum Top-up Tax (DMTT) prepayments need to be made by 20 December 2024 to avoid tax increases.

KPMG can support groups with both preparing the notification form (including group mapping for GloBE purposes) as well as the actual filing. Please speak to the authors or your usual KPMG UK contact if you would like any help from KPMG dealing with these new requirements.

For further information please contact:

• Kashif Javed 
  
• Qasim Javid