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Royal Decree setting the scale of fines in case of infringement of transfer pricing documentation obligations published

A. Administrative fines in case of infringement

Taxpayers that fail to satisfy the reporting and filing requirements for transfer pricing documentation will be subject to administrative fines ranging from 1.250 EUR to 25.000 EUR, as from the second infringement (article 445, §3 Belgian Income Tax Code 1992 (“BITC”).

 

The Royal Decree clarifies the above and introduces the scale of the administrative fines that will be applied.

 

As stated in the table below, the amount of the fine will depend on the type of the infringement and the recurrence thereof.

 

Type of the infringement EUR
Ingringement due to circumstances beyond the taxpayer's control 0
Infringement not attributable to bad faith or intention of tax evasion  
First infringement 0
Second infringement 1.250,00
Third infringement 6.250,00
Fourth infringement 12.500,00
Subsequent infringements 25.000,00
Infringement due to bad faith or intention of tax evation (including the filing of voluntarily incomplete or inaccurate forms)  
First infringement 12.500,00
Subsequent infringements 25.000,00

 

B. Transfer pricing documentation requirements

In 2016, Belgium implemented the OECD’s BEPS Action 13 on transfer pricing documentation requiring companies that meet certain thresholds to file specific forms, i.e. Master File, Local File, Country-by-Country Report, Country-by-Country Reporting Notification (cfr. articles 311/1 to 321/6, introduced by law of July 1, 2016).

For more information on the transfer pricing documentation requirements, reference is made to our previous E-tax flashes, dated May 17, 2016, July 6, 2016 and December 2, 2016. Those mainly provide information on the following matters:

  1. The thresholds to be considered in assessing whether a taxpayer should file the transfer pricing documentation forms;
  2. The filing date for each form;
  3. The format of each form.

 

 

 

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Dirk Van Stappen
Tax Partner

Corporate Tax
Antwerp

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