Belgium: Summary of recent tax developments

The KPMG member firm in Belgium prepared a March 2026 report summarizing recent tax developments, including indirect tax and transfer pricing changes.

Indirect tax

• Value added tax (VAT) treatment of transfer pricing adjustments: The Court of Justice of the European Union (CJEU) addressed the VAT treatment of transfer pricing adjustments in C‑726/23, Arcomet Towercranes, and C-603/24, Stellantis:
  • Voluntary TP adjustments that either (1) remunerate a distinct service, or (2) correct pricing of past/future transactions are within the scope of VAT. Underlying supplies will determine how VAT applies.
  • Pure profit split/allocation mechanisms, which neither remunerate a supply nor are linked to specific past/future transactions, and non‑voluntary adjustments (imposed by tax authorities), are generally outside the scope of VAT.
• Electronic invoicing (e-invoicing): On January 1, 2026, structured e-invoicing became mandatory for business-to-business (B2B) transactions in which both supplier and customer are established and VAT registered in Belgium. In this context, fines of €1,500 to €5,000 apply when taxable persons lack the technical means to issue and/or receive structured e‑invoices. The recipient’s VAT deduction right will be safeguarded even when the supplier has failed to issue a structured e-invoice. A tolerance period applies until March 31, 2026, if businesses can demonstrate timely and reasonable efforts to comply.
• VAT rates: From March 1, 2026, the VAT rate increased from 6% to 12% for certain rentals of furnished accommodation (e.g., hotels, B&Bs, Airbnb), and the VAT rate on pesticides and other phytopharmaceutical products increased to 21%.
• Adjustment period: The 15‑year VAT adjustment period for immovable property (and 25 years for buildings let with VAT) now also applies to certain renovation services previously subject to the 5-year adjustment period when the renovation results have an economic lifetime comparable to that of a new building. 

Corporate tax

• New capital gains tax on financial assets: The new capital gains tax on financial assets is set to take effect on January 1, 2026, for both individual and corporate income tax. The reform provides for three capital gains tax regimes: internal capital gains, substantial interest taxation, and the transfer for consideration of financial assets, each with its own rates and exemptions.
• Dividend taxation: The withholding tax on distributions of liquidation reserves accumulated as of January 1, 2026, and VVPRbis distributions as of (at the earliest) April 1, 2026, has been increased.
• Research and development (R&D) incentives: For the exemption from withholding tax for R&D personnel, a notification to Belspo may soon no longer be required upon recognition as a research center. Furthermore, investments are being further incentivized through a broader investment deduction (40% thematic deduction also for large companies, starting in the 2027 fiscal year), and a preliminary draft is in the works to introduce an optional system of accelerated depreciation, specifically for investments in R&D, digital assets, energy efficiency, and military production.

Transfer pricing

• Audit and controversy trends: Belgian transfer pricing audits are becoming increasingly intensive due to expanded audit capacity, greater digitalization, and a stronger federal focus on effective tax controls. Courts have also confirmed broad tax authority access to taxpayer data, including e‑audits, provided there are concrete indications of relevance. Cash pooling remains a key focus area, especially the functional profile of the pool leader and the distinction between “service provider” and “in‑house bank” models.
• Updates to transfer pricing forms:
  • Local file (275 LF) updates (effective FY 2025)
  • Master file (275 MF) expanded requirements on value chain description, DEMPE functions, and financial transactions (beyond OECD requirements)