Registratieverplichting Pijler II

 In 2021, the OECD (organization containing nearly 140 countries) detailed a plan to combat Base Erosion and Profit Shifting (BEPS). This plan contained two pillars, whereby “Pillar II” contains agreements on a global minimum level of taxation, thus ensuring that large multinationals always pay a minimum effective tax rate of 15% on their profits.

In 2022, in order to ensure that Pillar II rules are transposed into domestic law in the same way within the EU (creating a level playing field), the EU issued a Council Directive ensuring a global minimum level of taxation for multinational enterprise groups and large domestic groups in the Union. The directive has extended the scope of Pillar II to include large domestic groups – not only multinational groups.

At the end of 2023, the EU directive was transposed into national Belgian law introducing a minimum tax for multinational companies and large domestic groups. This introduced the minimum tax at the Belgian level.

 

Application of Pillar II

The following groups are subject to the minimum tax rate of 15% and are within the scope of the Pillar II-legislation in Belgium: 

• multinational enterprise groups (MNE groups) and large domestic groups;
• with annual turnover of at least €750 million in two or more of the four reporting years preceding the reporting year tested;
• with constituent entities* established in Belgium, regardless of whether the ultimate parent entity (UPE) is tax resident in Belgium or elsewhere.

* A constituent entity means any entity or permanent establishment of an in-scope group that is subject to the Pillar II rules.

 

Notification requirement

When subject to the minimum tax per Pillar II-legislation in Belgium, the group is subject to the notification requirement for CBE registration (‘Crossroads Bank of Enterprises’)

 

How? 

• In order to be able to register with the CBE, the Multinational enterprise group (‘MNE’) or the large-scale national group must notify the FPS Finance using a notification form available on MyMinfin (online platform of the FPS Finance).
•  After a complete notification, the group will be registered in the CBE and an e-mail with the group registration number will be send to the entity that notified the group.
• In case of an incomplete notification, the Belgian tax authorities will contact the notifying entity to make the necessary amendments. The current legislation does not stipulate a specific penalty in case of late or incorrect filing. However, there could be further consequences due to the lack of a group registration number, such as being unable to submit a Qualified Domestic Minimum Top-up Tax (QDMTT) return within the deadline.

 

When?

• The notification should be made no later than 30 days after the start of the tax year for which the group of MNE or the large-scale national group falls within the scope of the law of 19 December 2023. For example, if the first fiscal year starts on 1 January 2025, the notification deadline is 30 January 2025.
•  For those who are already subject to Pillar 2 in the meantime (e.g. from 1 January 2024), the first notification must take place no later than 45 days after the publication of the Royal Decree of 15 May 2024 in the Belgian Official Gazette. As the publication of this Royal Decree took place on 29 May 2024, the deadline would be 13 July 2024.

 

What?

The notification requires detailed information about the group and is divided into four sections:

• Group information (box I): The group's unique name, fiscal year, UPE address, contact details as well as whether the group is a large domestic group or a MNE group.
• Consolidated financial statements (box II): Details of the financial statements, the consolidation standards used, the currency, where these financial statements have been published.
• Ownership structure (box III): A list of all UPEs, Intermediate Parent Entities (IPEs), and Partially Owned Parent Entities (POPEs) and their status.
• Contact details (box IV): Information of the entity that will act as point of contact.

 

Who?

The notification must be made:

• where a single ultimate parent entity is established in Belgium: by that single ultimate parent entity
•  where several ultimate parent entities are established in Belgium: by the ultimate parent entity designated as the authorised representative
• where there is no ultimate parent entity and only one constituent entity is established in Belgium: by that single constituent entity
• where there is no ultimate parent entity and several constituent entities are established in Belgium: by the constituent entity designated as authorised representative

Note that a separate proxy form needs to be filled in to mandate the relevant parent or group entity.

 

Next steps for Belgium

Step 1: Determining whether the group qualifies as a multinational enterprise group or a large domestic group.
Step 2: Identifying the Belgian constituent entities and determining whether they are covered by Pillar II legislation.
Step 3: Verifying whether you have access to MyMinfin, as the notification should be filed through the MyMinfin portal.
Step 4: Gather the required information as per above.
Step 5: Complete and submit the Pillar two notification form electronically via the MyMinfin platform by 13 July 2024 (if the group is already subject to Pillar II).

 

Conclusion

In view of the deadline for the registration of groups subject to the Pillar II scheme of July 13, 2024, we recommend that you do the necessary as soon as possible. If you have any questions about this, do not hesitate to contact your advisor at Crowe Spark Accountants en Belastingadviseurs.