| Status | Enacted Law |
| Law | Act on the introduction of a minimum tax for multinational enterprise groups and large domestic groups’ of December 28, 2023. On May 12, 2024, the Belgian Official Gazette published a law which includes provisions to amend the ‘Act on the introduction of a minimum tax for multinational enterprise groups and large domestic groups’ to implement the OECD Administrative Guidance. On October 10, 2025, Belgium issued a Draft Law to amend its Minimum Tax Act. There are a number of technical amendments (which don’t effect the Minimum Tax calculation) as well as administrative amendments. On October 22, 2025, Belgium issued Circular 2025/C/68 which provides detailed guidance on the application of the Pillar 2 rules in Belgium. |
| Effective Date | Accounting periods beginning on or after December 31, 2023 |
| IIR | Yes (2024) |
| UTPR | Yes (2025) |
| QDMTT | Yes (2024) |
| Filing Deadlines | Standard |
| Safe Harbours | Transitional CbCR Safe Harbour, the Transitional UTPR Safe Harbour, QDMTT Safe Harbour and the NMCE Safe Harbour |
On October 10, 2025, Belgium issued a Draft Law to amend its Minimum Tax Act. There are a number of technical amendments (which don’t effect the Minimum Tax calculation) as well as administrative amendments.
On June 24, 2025, Belgium issued the draft XSD for the QDMTT return.
On April 10, 2025, Belgium’s Ministry of Finance released the QDMTT Return. This is still considered in draft form until it has been published in the Official Gazette.
On October 18, 2024, Belgium issued a draft QDMTT Return for consultation. The consultation lasts until November 8, 2024.
On 16 July 2024, Belgium published the Royal Decree of 7 July 2024 in the Official Gazette, which establishes the rules for companies to make advance payments of the minimum tax under Pillar 2.
On May 29, 2024, the Royal Decree of 15 May 2024 was published in the Official Gazette. This sets the GloBE Notification requirements.
On May 12, 2024, the Belgian Official Gazette published a law which includes provisions to amend the ‘Act on the introduction of a minimum tax for multinational enterprise groups and large domestic groups’ to implement the OECD Administrative Guidance.
On December 28, 2023, the Belgian Official Gazette published the ‘Act on the introduction of a minimum tax for multinational enterprise groups and large domestic groups’ to implement the EU Minimum Tax Directive from January 1, 2024.
On December 14, 2023, the Belgian parliament adopted the draft law to implement the EU Minimum Tax Directive.
On November 30, 2023, the Belgian House of Representatives adopted the draft law No. 55K3678 to implement the EU Minimum Tax Directive. The law will be enacted after it has been promulgated by the King and published in the official journal.
The draft law was passed with no amendments.
On November 13, 2023, draft law No. 55K3678 to implement the EU Minimum Tax Directive was sent to the Belgian Parliament.
OVERVIEW
On November 13, 2023, Draft Law No. 55K3678 to implement the EU Minimum Tax Directive was sent to the Belgian Parliament. On November 30, 2023, the Belgian House of Representatives adopted the Law with no amendments.
On December 28, 2023, the Belgian Official Gazette published the ‘Act on the introduction of a minimum tax for multinational enterprise groups and large domestic groups’ to implement the EU Minimum Tax Directive from December 31, 2023.
The Law includes an Income Inclusion Rule (IIR) and a domestic minimum tax (intended to be a Qualified Domestic Minimum Top-Up Tax) from December 31, 2023 and an Under-Taxed Profits Rule (UTPR) from December 31, 2024.
Belgium’s approach is to implement the global minimum tax provisions as a separate tax law.
On May 2, 2024, the Belgian Parliament approved a draft law which includes provisions to amend the ‘Act on the introduction of a minimum tax for multinational enterprise groups and large domestic groups’ in order to implement aspects of the OECD Administrative Guidance.
On October 10, 2025, Belgium issued a Draft Law to amend its Minimum Tax Act. The draft law includes a number of technical amendments (which don’t effect the Minimum Tax calculation), the correction of an error in the original law as well as administrative amendments.
GLOBE APPLICATION
General
As expected, the Law closely follows the EU Directive. There are very few options given to member states in the EU Directive in terms of flexibility over national implementation. As provided in the EU Minimum Tax Directive, the GloBE rules also apply to wholly domestic groups.
Whilst the Law is to implement the EU Minimum Tax Directive into domestic law, it did not reflect most aspects of the OECD Administrative Guidance (either the February 2023, July 2023 or December 2023 guidance issued). However, the May 2024 Amending Law includes provisions to amend the Law to include additional provisions from the OECD Administrative Guidance as from December 31, 2023.
Similarly, only the Transitional CbCR Safe Harbour from the OECD Safe Harbours and Penalty Relief Guidance were included in the original Law. Other Safe Harbours from the Second Set of OECD Administrative Guidance (the QDMTT Safe Harbour, the Transitional UTPR Safe Harbour and the Non-Material Constituent Entity Safe Harbour) were included in the May 2024 Amending Law.
The Law also includes other ancillary changes and, for example, in Article 71 it amends Belgium’s R&D Rax Credit regime to reduce the repayment period from 5 to 4 years, to ensure it qualifies as a Qualified Refundable Tax Credit.
Administrative Guidance
The aspects of the OECD Administrative Guidance currently included are:
-Forex hedge election (Article 2.2)
-Excluded dividends – asymmetric treatment of dividends and distributions (Article 2.3)
-Debt release election (Article 2.4)
-Accrued pension expenses (Article 2.5)
-Excess negative tax carry-forward guidance (Article 2.7)
-Substitute Loss-carry forwards (Article 2.8 )
-Equity gain or loss inclusion election (Article 2.9)
-Allocation of taxes arising under a Blended CFC Tax Regimes (Article 2.10)
-Portfolio shareholding election (Article 3.5)
-Tax Credits Guidance (MTTCs) (Article 2 Second Set of OECD Administrative Guidance)
The following are not currently included:
-Currency Conversion Rules (Article 1.1)
-Sovereign wealth funds and the definition of Ultimate Parent Entity (Article 1.4)
-Clarifying the definition of ‘Excluded Entity’ (Article 1.5)
-Meaning of “ancillary” for Non-Profit Organisations (Article 1.6);
-The extension of the taxable distribution method election to insurance investment entities (Article 3.1)
-Exclusion of Insurance Investment Entities from the definition of Intermediate Parent Entity and Partially-Owned Parent Entity (Article 3.2)
-The extension of Additional Capital to include Restricted Tier One Capital (Article 3.3)
-Liabilities related to Excluded Dividends and Excluded Equity Gain or Loss from securities held on behalf of policyholders (Article 3.4)
-Application of Tax transparency election to Mutual insurance companies (Article 3.6).
-Currency Conversion Rules (Article 1 of the Second Set of OECD Administrative Guidance )
-SBIE Rules:
-Foreign rules (Article 3 Second Set of OECD Administrative Guidance)
-Stock-based compensation election
-Leases (Article 3 Second Set of OECD Administrative Guidance)
Safe Harbour and Penalty Relief Guidance
Chapter 12 of the Law includes transitional rules. This includes the Transitional CbCR Safe Harbour based on the OECD provisions outlined in its Safe Harbours and Penalty Relief Guidance.
The 2024 Amending Law also included further aspects of the Transitional CbCR Safe Harbour as provided in the December 2023 OECD Administrative Guidance. This includes:
-Same Financial Statements/Local Financial Statements for Statutory Reporting
-MNEs not required to file CbC Reports
-Treatment of hybrid arbitrage arrangements
Other Safe Harbours such as the QDMTT Safe Harbour, the Transitional UTPR Safe Harbour and the NMCE Safe Harbour are included in the May 2024 Amending Law.
ELECTIONS
Elections in the OECD Model Rules
All of the elections included in the OECD Model Rules and the EU Minimum Tax Directive are provided in the Law, including:
-Excluded Entity Election (Article 6 of the Law)
-Stock-Based Compensation Election (Article 13(1) of the Law)
-Election to use the Realization Method (Article 13(2) of the Law)
-Election to Spread Capital Gains (Article 13(3) of the Law)
-Consolidation Election (Article 13(4) of the Law)
-Unclaimed Accrual Election (Article 16 of the Law)
-GloBE Loss Election (Article 18 of the Law)
-Prior Year Adjustment Election (Article 20 of the Law)
-De-minimis Election (Article 25 of the Law)
-Substance-Based Income Exclusion Election (Article 23 of the Law)
-Deemed Disposal of Assets Election (Article 38(4) of the Law)
-Taxable distribution Election (Article 46 of the Law)
-Tax Transparency Election (Article 45 of the Law)
-Distribution Tax Regime Election (Article 43 of the Law)
-Safe Harbour Elections (Chapter 12 of the Law)
Elections in the Administrative Guidance
All elections included in the OECD Administrative Guidance are included in the Law. This includes the:
-Debt Release Election (Article 13(6) of the Law);
-Foreign Exchange Hedge Election (Article 13(5) of the Law);
-Excess Negative Tax Carry-Forward Election (Article 16 of the Law); and the
-Equity Investment Inclusion Election (Article 13(7) of the Law).
– Portfolio Shareholding Election ((Article 3(49) as provided by the May 2024 Amending Law))
Note that the original Minimum Tax Act included an error by providing that the Forex Hedge Election in Article 13(5) of the law was a 1-year election. The October 2025 draft law amends this in line with the OECD Administrative Guidance to make this a 5 year election.
DEVIATIONS FROM THE OECD MODEL RULES/EU GLOBAL MINIMUM TAX DIRECTIVE
Domestic Groups
The application of the global minimum tax follows the EU Minimum Tax Directive (eg it also applies to wholly domestic groups and requires a constituent entity applying the IIR to apply it not only to foreign subsidiaries but also to all constituent entities resident in that Member State (which isn’t mandatory in the Model Rules)).
UTPR
The OECD Model Rules allow flexibility as to how to apply the UTPR. Belgium’s approach is to apply a UTPR top-up tax rather than a denial of deduction.
As such the carry forward provisions in Article 2.4.2 of the Model Rules for UTPR amounts not sufficient to provide for the additional cash tax expense are not relevant and these rules are not included in the Law.
DOMESTIC MINIMUM TAX
General
Chapter 6 of the Law provides that Belgium will apply a domestic minimum top-up tax (intended to be a QDMTT) for financial years beginning on or after December 31, 2023.
QDMTT Design Features
The Law provides that the standard GloBE calculation rules apply for determining the top-up tax. As such it refers to the general GloBE calculation in Article 21 for the determination of adjusted taxes and allowable net profits (to determine the QDMTT ETR).
This also ensures that the special rules of chapters 9 and 10 on corporate restructuring, holding structures, and for investment entities also apply for the application of the QDMTT. The Law specifically applies the de-minimis rule for QDMTT purposes.
There are just two amendments in the Law which provide for different calculations for the GloBE ETR and the QDMTT ETR.
Amended Top-Up Tax Calculation
The Law amends the standard top-up tax calculation so that the determination of the QDMTT payable does not itself require the deduction of QDMTT (which would include an element of circularity).
Taxes Pushed-Down
Tax paid or incurred by a Constituent Entity-owner under a CFC Tax Regime that is pushed down to a domestic Constituent Entity in the GloBE Rules must be excluded, as provided in the OECD Administrative Guidance. This is included in Article 27(1) of the Law.
This preserves Belgium’s primary right to tax income accruing to a Belgian member entity which is also a CFC. If there were no statutory derogation from the general GloBE rules for the calculation of the domestic minimum tax, and the CFC tax paid by the controlling company abroad were included in the included taxes of the Belgian CFC, the effective tax rate would be increased. Therefore, excluding the CFC tax from the Belgian CFCs covered taxes allows Belgium to tax low-taxed income at a higher rate than would be the case under an IIR.
Article 27 also prevents the pushdown of tax to PEs.
The OECD Administrative Guidance also restricts the push-down to hybrid entities and for taxes on distributions (aside from Belgian withholding tax on distributions). These additional push-down restrictions are included in the May 2024 Amending Law and take effect from December 31, 2023.
Aside from this, there are no further amendments, and options available in the OECD Administrative Guidance relating to ownership interests (eg the possibility for the QDMTT in respect of Joint Ventures to be the whole amount irrespective of the fact that the UPE would only be subject to tax on its share of the Top-up Tax arising from Joint Ventures or JV subsidiaries) or for local accounting standards/currency are not provided.
When an MNE group has several entities in Belgium which are taken into account for QDMTT purposes, the QDMTT is collected from the constituent entity having the highest net income in Belgium.
However, an MNE group can designate an entity from which the tax is collected.
Registration
The May 2024 Amending Law includes a requirement for entities subject to the Belgian IIR, UTPR or QDMTT to obtain a government issue KBO number.
On May 21, 2024, the Belgian Tax Authority issued further details on the notification requirements for in-scope MNE groups.
The notification of a group of MNEs or a large national group must be made no later than 30 days after the beginning of the tax year for which the group of MNEs or the large national group falls within the scope of the Law of 19 December 2023.
However, in order to give those who have already started or will soon start their first tax year sufficient time to collect the requested information, the notification period will in any case be granted until 45 days after the publication in the Belgian Official Gazette of a Royal Decree of 15 May 2024. The Royal Decree was published on May 29, 2024, which means that the notification deadline for existing notifications is July 13, 2024. However, on June 21, 2024, the Belgian Tax Authorities published a FAQ which clarifies that this is extended to the next working day (ie July 15, 2024).
On July 2, 2024, the Belgian Tax Authority extended the notification deadline to September 16, 2024 for groups that are not making advance payments in 2024 for the QDMTT or the IIR.
The notification form includes a significant amount of information for registration.
The notification must be made:
Filing
The relevant aspects of the submission of a GloBE Information Return (GIR) are included, as provided in the EU Directive.
Every Constituent Entity located in Belgium will have an obligation to file a GIR in Belgium. However, this obligation can be discharged if the GIR is filed by:
-The Ultimate Parent Entity, or
-The Designated Filing Entity.
Where the GIR is being filed by either the Ultimate Parent Entity or the Designated Filing Entity, the Constituent Entity, must file a notification with the Revenue.
The notification must contain:
-Details of the entity that is filing the GIR, and
-The jurisdiction in which such an entity is located.
Where the GIR is filed by the Designated Local Entity it needs to outline the Constituent Entities that it is filing on behalf of.
Both the GIR and associated notifications must be filed no later than 15 months after the end of the fiscal year (with an 18-month deadline for the Transition Year).
For entities subject to the QDMTT, a QDMTT return is required to be filed under Article 52 of the Law, by the last day of the eleventh month following the end of the tax year. On April 10, 2025, the Belgium Ministry of Finance issued the QDMTT Return. This is still considered as draft until published in the Official Gazette.
On November 17, 2025, the Belgian tax authorities officially confirmed that the deadline for filing the QDMTT returns for reporting years:
– beginning on December 31, 2023 or later, and
– ending on June 30, 2025 at the latest,
is extended until June 30, 2026.
The May 2024 Amending Law inserts a new Article 57/1 into the Law to provide that a group entity established in Belgium, or the designated local entity on behalf of that group entity, is required to submit a declaration (by the GIR filing deadline) indicating the amount of top-up tax under the IIR or UTPR due in Belgium.
The notes to the legislation state that this is because the centralized filing of the GIR in one country means that it may take some time for the data needed to assess tax in Belgium to reach the Belgian authorities.
The October 2025 draft law includes a new Article 62/3 to provide for the appointment of a general representative for QDMTT and UTPR purposes.
When there are a number of constituent entities/JVs of an MNE/large domestic group subject to Belgian QDMTT or the UTPR, they are required to designate one of them to represent them for tax purposes. This will include all QDMTT/UTPR filing and payment obligations. The representative entity nomination will be made via a secure electronic platform made available by FPS Finance.
If no representative entity is nominated, the entity which files the tax return or GIR is deemed to be the representative entity. If there is no filing made then the representative entity is determined via a cascading rule as:
1 the ultimate parent entity;
2 if no ultimate parent entity of the group is established in Belgium, the parent entity established in Belgium holding directly or indirectly an interest in all of the constituent entities or JVs established in Belgium;
3 the constituent entity or JV established in Belgium which has the highest balance sheet total.
Balance sheet total is defined as the balance sheet total of the financial accounts of the group entity or joint venture as at the last day of the preceding accounting year.
The representative entity takes on the role and responsibilities of reporting constituent entity, designated entity and designated local entity for both QDMTT and UTPR purposes.
Payment
Not provided in the Law.
On 16 July 2024, Belgium published the Royal Decree of 7 July 2024 in the Official Gazette, which establishes the rules for companies to make advance payments of the minimum tax under Pillar Two.
Penalties
Article 61 of the Law provides for a late filing penalty of between 2,500 and 250,000 euros for any infringement of the provisions of the Law.
On November 17, 2025, the Belgian tax authorities officially confirmed that the deadline for filing the QDMTT returns for reporting years:
– beginning on December 31, 2023 or later, and
– ending on June 30, 2025 at the latest,
is extended until June 30, 2026.
On April 10, 2025, Belgium’s Ministry of Finance released the QDMTT Return. This is still considered in draft form until it has been published in the Official Gazette.
On October 18, 2024, Belgium issued a draft QDMTT Return for consultation. The consultation lasts until November 8, 2024.
On May 29, 2024, the “Royal Decree of 15 May 2024 was published in the Belgian Official Gazette.
MNE Groups or the large domestic groups are required to submit a notification form to register with the Belgian Trade Register, no later than 30 days after the start of the reporting year for which the group falls within the scope of the GloBE rules in Belgium.
However, in order to give those who have already started or are about to start their first reporting year sufficient time to collect the requested information, the notification deadline is extended to 45 days after the publication of the Royal Decree of 15 May 2024 in the Belgian Official Gazette. This means the notification form must be submitted by July 13, 2024 at the latest:
Notification Form
| Belgium | |||
|---|---|---|---|
| Effective Date: | Accounting periods beginning on or after December 31, 2023 | ||
| Section/Article | |||
| First Set of OECD Administrative Guidance | |||
| 1.1 | Rebasing monetary thresholds in the GloBE Rules | – | |
| 1.2 | Deemed consolidation test | – | |
| 1.3 | Consolidated deferred tax amounts | – | |
| 1.4 | Sovereign wealth funds and the definition of Ultimate Parent Entity | – | |
| 1.5 | Clarifying the definition of ‘Excluded Entity’ | – | |
| 1.6 | Meaning of ancillary for Non-Profit Organisations | – | |
| 2.1 | Intra-group transactions accounted at cost | – | |
| 2.2 | Excluded Equity Gains or Loss and hedges of investments in foreign operations | 13(5) |
|
| 2.3 | Excluded Dividends- Asymmetric treatment of dividends and distributions | 9 (commentary) |
|
| 2.4 | Debt release Election | 13(6) |
|
| 2.5 | Accrued Pension Expenses | 9 |
|
| 2.6 | Covered Taxes on deemed distributions | – | |
| 2.7 | Excess Negative Tax Carry-forward guidance | 16 |
|
| 2.8 | Substitute Loss carry forwards | Amending law inserts a new Article 17/1 in the GloBE Law. | |
| 2.9 | Equity Gain or loss inclusion election | 13(7) |
|
| 2.9 | Qualified Ownership Interest/Flow through entity | – | |
| 2.1 | Allocation of taxes arising under a Blended CFC Tax Regimes | Amending law includes a new Article 67/1 | |
| 3.1 | Application of Taxable Distribution Method Election to Insurance Investment Entities | – | |
| 3.2 | Exclusion of Insurance Investment Entities from the definition of Intermediate Parent Entity and Partially-Owned Parent Entity | – | |
| 3.3 | Restricted Tier 1 Capital | – | |
| 3.4 | Liabilities related to Excluded Dividends and Excluded Equity Gain or Loss from securities held on behalf of policyholders | – | |
| 3.5 | Simplification for Short-term Portfolio Shareholdings | Amending Law (amends Article 3(49)) | |
| 3.6 | Application of Tax transparency election to Mutual insurance companies | – | |
| 4.1 | Deferred tax assets with respect to tax credits under Article 9.1.1 | – | |
| 4.2 | Applicability of Article 9.1.3 to transactions similar to asset transfers | – | |
| 4.3 | Asset carrying value and deferred taxes under 9.1.3 | – | |
| Second Set of OECD Administrative Guidance | |||
| 1 | Currency conversion rules | – | |
| 2 | MTTCs | Amending Law (amends Article 3(38)/(39)) | |
| 3 | SBIE Rules | ||
| – Foreign rules | – | ||
| Stock-based compensation election | – | ||
| Leases | – | ||
| – Impairment losses inc in tangible asset value | – | ||
| 4.1 | QDMTT Safe Harbour | Amending law includes a new Article 62/1 | |
| 4.2 | UTPR Safe Harbour | Amending law includes a new Article 64/1 | |
| Third Set of OECD Administrative Guidance | |||
| 1 | Transitional CbCR – Purchase Accounting Adjustments (consistent reporting condition, goodwill impairment adjustment) | ||
| 2.2.1 | Transitional CbCR – JVs | ||
| 2.3.1 | Transitional CbCR – Same Financial Statements/Local Financial Statements for Statutory Reporting | Amending Law (amends Article 63) | |
| 2.3.2 | Transitional CbCR – Using different accounting standards | ||
| 2.3.3 | Transitional CbCR – Adjustments to Qualified Financial Statements/Dividend Mismatches | ||
| 2.3.4 | Transitional CbCR – MNEs not required to file CbC Reports | Amending Law (amends Article 63) | |
| 2.3.5 | Transitional CbCR – Qualified Financial Statements for PEs | ||
| 2.4.2 | Transitional CbCR – Treatment of Taxes on income of PEs, CFCs, and Hybrid Entities | ||
| 2.6 | Transitional CbCR – Treatment of hybrid arbitrage arrangements | Amending Law (amends Article 63) | |
| 3.1 | Identifying Consolidated Revenue | ||
| 3.2 | Mismatch between Fiscal Years of the UPE and another Constituent Entity | ||
| 3.3 | Mismatch between Fiscal Year and Tax Year of Constituent Entity | ||
| 4.2.1 | Blended CFCs -multiple GloBE Jurisdictional ETRs | Amending law includes a new Article 67/1 | |
| 4.2.2 | Blended CFCs – not required to calculate an ETR | Amending law includes a new Article 67/1 | |
| 4.2.3 | Blended CFCs – income of non-GloBE Entities | Amending law includes a new Article 67/1 | |
| 5.3 | 30 June 2026 Filing deadline | ||
| 6 | NMCE Simplified Calcs | Amending law inserts a new Article 62/2 in the GloBE Law. | |
| Fourth Set of OECD Administrative Guidance | |||
| 1.2.1 | Aggregate DTL Category basis | ||
| 1.2.1 | Exclusion of certain types of GL accounts and separate tracking | ||
| 1.2.1 | Exclusion of GL accounts that generate standalone DTAs | ||
| 1.2.1 | Exclusion of swinging accounts and separate tracking | ||
| 1.2.2 | FIFO/LIFO Basis | ||
| 1.2.3 | Aggregation of Short-term DTLs | ||
| 1.2.2 | Reversal of DTLs that accrued before the Transition Year | ||
| 1.2.2 | 5 year unclaimed accrual election | ||
| 2.1.2 | Recalculated deferred tax where GloBE carrying value differs from accounting carrying value | ||
| 2.1.2 | GloBE and accounting carrying values and the Transition Rules | ||
| 2.1.2 | Additional provisions for Intragroup transactions accounted for at cost | ||
| 2.1.2 | Exclusion of GloBE carrying value from SBIE | ||
| 3.1.3 | General rules for allocating cross-border, current taxes under a cross-crediting corporate tax system: 4 Steps | ||
| 3.1.3 | Specific rules for foreign PEs/CFCs, Hybrids/rev hybrids with domestic source income | ||
| 3.1.3 | Cross-crediting between Permanent Establishments and distributions from foreign subsidiaries | ||
| 4.1 | Extension of the Substitute Loss Carry-forward DTA to PEs, hybrids and rev hybrids | ||
| 4.2 | Allocation of deferred tax expenses and benefits from a Parent Entity to a CFC, PE Hybrid or Rev Hybrid: 5 step process | ||
| 4.2.2 | Five-Year Election to exclude the allocation of all deferred tax expenses and benefits to CFCs, PEs, Hybrids and Rev Hybrids | Included in the QDMTT Return | |
| 4.2.3 | Exclusion of deferred tax assets or liabilities arising under a Blended CFC regime from transition rules | ||
| 5.2.2 | Determining GloBE status when a Flow-through Entity is held directly by another Flow-through Entity | ||
| 5.3.2 | Non-group owners: Partially owned Flow-through Entities | ||
| 5.3.5 | Non-group owners: Indirect minority ownership | ||
| 5.4.2 | Taxes allocated to a flow-through entity | ||
| 5.5.2 | Hybrid entities – Taxes pushed down include indirect owners | ||
| 5.5.4 | Hybrid entities – Entities located in jurisdictions without a Corporate Income Tax system | ||
| 5.6.2 | Extension of taxes pushed down to include Reverse Hybrids | ||
| 6.1.4 | Option to exclude a Securitization Entity from scope of QDMTT | ||
| 6.1.4 | Option to not impose top-up tax liabilities on SPVs used in securitization transactions | ||
| 6.1.4 | Amendments to the Switch-Off rule | ||
| 6.1.4 | New definition: Securitization Entity | ||
| 6.1.4 | New definition: Securitization Arrangement | ||
| January 2025 OECD Administrtive Guidance | |||
| 1 | Articles 8.1.4 and 8.1.5 | ||
| 1 | Amendments to CbCR Safe Harbour for 9.1 | ||
| 1 | Amendments to QDMTT Safe Harbour for 9.1 | ||
| 1 | Article 9.1 of the GloBE Rules | ||
| 1 | Central Record of Legislation with Transitional Qualified Status |
| Note | Belgium | |
|---|---|---|
| QDMTT?(Enacted/Draft) | Is there a QDMTT in the Legislation? | Yes – Enacted |
| Effective Date: | Accounting periods beginning on or after December 31, 2023 | |
| Administrative Guidance/Safe Harbour Guidance? | Are the provisions of the OECD Administrative Guidance and Safe Harbour Guidance reflected in the current legislation? | Partially |
| Separate/Transposed QDMTT | Is the QDMTT a Separate QDMTT or a Transposition of the GloBE Rules (with Amendments) | Transposed |
| Domestic Groups | A QDMTT can also apply to purely domestic groups. | Yes |
| Scope Definitions | The definitions of Ultimate Parent Entity, MNE Group, and Constituent Entity correspond with the definitions in the GloBE Rules. | Yes – Transposed under Article 27 |
| Income and covered taxes of Constituent Entities | The QDMTT must compute the tax liability for the jurisdiction by taking into account the income and covered taxes of Constituent Entities under the GloBE Rules. | Yes – Transposed under Article 27 |
| Separate ETRs | A QDMTT must determine a separate ETR and Top-up Tax amount for MOCEs, Joint Ventures and JV Subsidiaries. | Yes – Transposed under Article 27 |
| Charging | A QDMTT must impose a Top-up Tax on one or more domestic Constituent Entities on the Excess Profits of all domestic Constituent Entities, including the domestic Parent Entity. | Yes – Transposed under Article 27 |
| Enforceability | The legal liability for the domestic top-up tax needs to be enforceable against at least one Constituent Entity in the jurisdiction. | Yes – Article 28(3) |
| Different Accounting Standard? – Optional | Is the use of a local accounting standard optional? | No |
| Different Accounting Standard? – Mandatory | Is the AG2 guidance followed? | No |
| Different Accounting Standard? – Default GloBE rules | Do the general GloBE rules apply for the QDMTT accounting standard? | Yes |
| Require 100% ownership? | The QDMTT )can require 100% ownership | No |
| Differences to GloBE Rules: tighter restriction is consistent with local tax rules | The QDMTT can be more restrictive than the GloBE Rules where the tighter restriction is consistent with local tax rules. | None |
| Differences to GloBE Rules: Not relevant to in the context of its domestic tax system | The QDMTT can exclude adjustments that are not relevant to in the context of its domestic tax system. | None |
| Income/Loss of a PE | The QDMTT must exclude the income or loss of a foreign Permanent Establishment from the income or loss of the Main Entity. | Yes – Transposed under Article 27 |
| Tax Transparency | A QDMTT must include certain tax transparent provisions. | Yes – Transposed under Article 27 |
| Adjusted Covered Taxes Consistency | The range of taxes included in Covered Taxes needs to be the same or narrower, as under the GloBE rules. | Yes – Transposed under Article 27 |
| GloBE Loss Election? | Not Required in QDMTT | Yes – Transposed under Article 27 |
| No Pushdown to CFC or PE | A QDMTT must exclude: (1) tax paid or incurred by a Constituent Entity-owner under a CFC Tax Regime that is pushed down to a domestic Constituent Entity in the GloBE Rules and (2) tax paid or incurred by a Main Entity that is allocated to a PE in the jurisdiction. | Yes – Article 27 |
| Exclude tax allocated to Hybrids | Second AG Guidance | Yes – 2024 Law amends Article 27(1) |
| Exclude allocated net basis tax on dividends (except WHT) | Second AG Guidance | Yes – 2024 Law amends Article 27(1) |
| UPE that is a Flow-Through Entity | Second AG Guidance | Yes – Transposed under Article 27 |
| UPE subject to Deductible Dividend Regime | Second AG Guidance | Yes – Transposed under Article 27 |
| Eligible Distribution Tax Systems | Second AG Guidance | Yes – Transposed under Article 27 |
| ETR Computation for Investment Entities | Second AG Guidance | Yes – Transposed under Article 27 |
| Investment Entity Tax Transparency Election | Second AG Guidance | Yes – Transposed under Article 27 |
| Taxable Distribution Method Election | Second AG Guidance | Yes – Transposed under Article 27 |
| Multi-Parented MNE Groups | Second AG Guidance | Yes – Transposed under Article 27 |
| Additional Top-Up Tax/Excess Negative Tax Expense | A QDMTT needs to have provisions for additional top-up tax where there is no Net GloBE Income and the Adjusted Covered are less than zero and less than the Expected Adjusted Covered Taxes. Amount. Excess Negative Tax Carry-forward rules also need to be in place. | Yes – Transposed under Article 27 |
| Modified Top-Up Tax Formula | The QDMTT top-up tax formula needs to be modified as the GloBE Rules subtract tax paid under a QDMTT from the current GloBE Top-up Tax. | Yes – Article 27 |
| Same Approach As GloBE Rules | A QDMTT must require that top-up tax is taken into account by the relevant Constituent Entity at the same time and in the same manner as under the GloBE Rules (eg it can’t be carried forward). | Yes – Transposed under Article 27 |
| SBIE Included? | Not Required in QDMTT | Yes – Article 27 |
| SBIE Rates same as GloBE? | Not Required in QDMTT | Yes – Transposed under Article 27 |
| De Minimis Rule Included? | Not Required in QDMTT | Yes – Article 29 |
| Restructuring Rules? | A QDMTT needs to include restructuring rules as provided in the GloBE rules to the extent necessary to conform to the tax reorganization rules in the jurisdiction. | Yes – Transposed under Article 27 |
| Safe Harbours? | A QDMTT needs to contain GloBE safe harbours. | Yes – Transposed under Article 27 |
| Deferred Tax Transition Rule? | A QDMTT must include the deferred tax starting point under Article 9.1.1 of the Model Rules. | Yes – Transposed under Article 27 |
| SBIE Transitional Rates? | Not Required in QDMTT | Yes – Transposed under Article 27 |
| Initial Phase of International Activity Exemption | Not Required in QDMTT | No – removed in 2024 Law |
| Elections? | Where the GloBE Rules permit an election, a QDMTT must generally also provide for the election and require the MNE Group to make the same election under the QDMTT as is made under the GloBE Rules. | Yes – Transposed under Article 27 |
| Deferred Tax transition: First time or refreshing rule? | Second AG | None |
| New transition year – amend tax attributes? | Second AG | None |
| Currency provisions? | Second AG | None |
| DTL Recapture rules – Aggregate DTL Categories | Fourth AG, 1.2.8 | |
| DTL Recapture rules Unclaimed Accrual Five-Year Election | Fourth AG, 1.2.8 | |
| Reverse Hybrid Pushdown | Fourth AG, 5.6.2 | |
| Securitization Entities – A QDMTT may also exclude a Securitisation Entity from its scope | Fourth AG, 6.1.4 | |
| Securitization Entities – A jurisdiction may allocate the QDMTT liability for any QDMTT top-up tax to another Constituent Entity (if any) that is located in the jurisdiction | Fourth AG, 6.1.4 | |
| Note |
| Belgium | ||
|---|---|---|
| Effective Date: | Accounting periods beginning on or after December 31, 2023 | |
| Section/Article | ||
| Safe Harbour & Penalty Relief Guidance | De Minimis Test | 64(1) |
| Safe Harbour & Penalty Relief Guidance | Simplified ETR Test | 64(1) |
| Safe Harbour & Penalty Relief Guidance | Routine Profits Test | 64(1) |
| Safe Harbour & Penalty Relief Guidance | Simplified Covered Tax defn (inc exclusion of uncertain tax positions) | 63(5) |
| Safe Harbour & Penalty Relief Guidance | Simplified ETR defn | 63(6) |
| Safe Harbour & Penalty Relief Guidance | Transition Period | 63(7) |
| Safe Harbour & Penalty Relief Guidance | Transition Rate | 63(8) |
| Safe Harbour & Penalty Relief Guidance | Defn of Qualified Financial Statements | 63(1) |
| Safe Harbour & Penalty Relief Guidance | Special Rule for Joint Ventures | 64(3) |
| Safe Harbour & Penalty Relief Guidance | Special Rule for Tax Neutral UPEs | 64(2)(5) |
| Safe Harbour & Penalty Relief Guidance | Special Rules for Investment Entities and their Constituent Entity-owners | 64(3) |
| Safe Harbour & Penalty Relief Guidance | Special Rule for Net Unrealised Fair Value Loss | 63(4) |
| Safe Harbour & Penalty Relief Guidance | Exclusions | 64(2) |
| December 2023 OECD Administrative Guidance | ||
| 1 | Transitional CbCR – Purchase Accounting Adjustments(consistent reporting condition, goodwill impairment adjustment) | |
| 2.2.1 | Transitional CbCR – JVs | |
| 2.3.1 | Transitional CbCR – Same Financial Statements/Local Financial Statements for Statutory Reporting | Draft Law (amends Article 63) |
| 2.3.2 | Transitional CbCR – Using different accounting standards | |
| 2.3.3 | Transitional CbCR – Adjustments to Qualified Financial Statements/Dividend Mismatches | |
| 2.3.4 | Transitional CbCR – MNEs not required to file CbC Reports | Draft Law (amends Article 63) |
| 2.3.5 | Transitional CbCR – Qualified Financial Statements for PEs | |
| 2.4.2 | Transitional CbCR – Treatment of Taxes on income of PEs, CFCs, and Hybrid Entities | |
| 2.6 | Transitional CbCR – Treatment of hybrid arbitrage arrangements | Draft Law (amends Article 63) |
| January 2025 OECD Administrtive Guidance | ||
| Amendments to CbCR Safe Harbour for 9.1 |
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