Belgium: Updated transfer pricing forms
Updated Local file, Master file, and country-by-country reporting notification forms
Three new Royal Decrees (dated June 16, 2024) providing an updated Local file form (275 LF), Master file form (275 MF) and country-by-country (CbC) reporting notification form (275 CBC NOT) were published on July 15, 2024.
The forms are being updated to reflect additional guidance included in the latest version of the OECD Transfer Pricing Guidelines (2022) (particularly with respect to hard-to-value intangibles and financial transactions) and insights gained by the Belgian tax authorities since the introduction of the forms.
The updated forms require the inclusion of additional information for certain taxpayers with respect to financial years starting on or after January 1, 2025.
KPMG observation
Although the updated transfer pricing forms indicate only minor adjustments have been made, they could be seen as a step towards an implicit mandatory transfer pricing documentation requirement (i.e., by obliging companies to include available/submit documentation as attachment(s) to the Local file form). In addition, the updated Master file form extends beyond what is expected under the OECD Transfer Pricing Guidelines (e.g., the third and fourth step of the value chain analysis mentions “allocation of the profits” and “comparison and alignment with transfer pricing outcomes” and is relatively specific compared to the more general wording used by the OECD).
Read an August 2024 report prepared by the KPMG member firm in Belgium