In a recent development, groups with Belgian entities falling under the scope of the OECD’s Pillar Two rules are required to register at the Crossroads Bank for Enterprises (CBE). This mandate was formalized with the publication of a Royal Decree in the Belgian Official Gazette on 29 May 2024. The registration must be completed within 30 days from the start of the fiscal year for which a group is first subject to the Pillar Two rules or by 13 July 2024, whichever is later. Given the stringent deadlines and the volume of information required, immediate action is necessary.
Key Points:
- Mandatory CBE Registration: Groups with Belgian entities under Pillar Two must register.
- Tight Deadlines: Registration must occur within 30 days of the beginning of the fiscal year or by 13 July 2024.
- Comprehensive Information Required: Detailed information must be provided, necessitating thorough preparation.
Context and Implementation
Belgium adopted the Pillar Two rules through the Law of 19 December 2023, which became effective on 31 December 2023. These rules apply to fiscal years starting on or after this date for applicable groups. Recent amendments to this law have incorporated guidance from the OECD, enhancing the regulatory framework.
Each group that falls under the Pillar Two rules needs a unique CBE number. This number is crucial for maintaining organized communication with Belgian tax authorities, filing relevant Pillar Two returns, and managing tax obligations such as the Income Inclusion Rule (IIR), Undertaxed Payments Rule (UTPR), or Qualified Domestic Minimum Top-up Tax (QDMTT).
Steps for Compliance
1. How to Register:
To register, groups must submit a specific notification form via the MyMinFin platform in XML format. This form must be filed with the Federal Public Service (FPS) Finance.
2. Timing:
- The form must be filed within 30 days after the start of the fiscal year for which the group is in scope of the Pillar Two rules.
- Groups already in scope must file within 45 days after the Royal Decree’s publication, by 13 July 2024.
3. Responsible Parties:
- Belgian Ultimate Parent Entity (UPE): The UPE must file the form if established in Belgium. If there are multiple UPEs, the designated agent must do so.
- Foreign UPE: If the UPE is outside Belgium, the Belgian group entity is responsible. In cases of multiple entities, the appointed agent must file.
A digital mandate form is available for cases with multiple entities or UPEs, which must be filed along with the notification form.
Information Requirements
The notification form is divided into four parts, each requiring detailed disclosures.
Part I includes group name, reporting period, contact details, and information about the UPE’s representative. Part II requires detailed data on the UPE’s consolidated financial statements, including accounting standards, currency, and publication details. Part III asks for comprehensive details of the group’s ownership, requiring identification of each entity’s tax identification number (TIN) and Pillar Two status. This part necessitates a detailed scoping analysis to ensure accurate reporting. Lastly, part IV seeks information about the entity acting as the group’s contact point, including name, TIN, address, and contact details.
Immediate Action Required
Given the extensive information required and the short timeframe, groups must act swiftly. Completing the notification form may need a prior scoping analysis of the Pillar Two status if not already performed. Additionally, the administrative process to submit the form can be time-consuming, involving potential steps such as:
- Designating a Belgian entity to represent the group.
- Registering a foreign legal representative if needed.
- Creating a mandate for the person or advisor filing the notification.
Need Assistance?
For assistance with completing or filing the form, please contact our tax experts. Our team can provide guidance and support to ensure compliance with these new requirements.
By understanding and adhering to these new regulations, groups can ensure they meet their obligations under the Pillar Two rules, maintaining compliance and avoiding potential penalties.
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