Belgium Issues a Draft Law for Pillar 2 Amendments

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.

The technical amendments include changes to definitions (such as a group and joint venture) to better reflect the OECD Model rules.

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 draft law amends this in line with the OECD Administrative Guidance to make this a 5 year election. This is applicable for fiscal years beginning on or after December 31, 2023.

General Administrative Changes

Many of the administrative changes in the law are to clarify the provisions relating to the GIR and tax returns. The current law refers to ‘declarations’ which can be unclear as to the nature of the filings. The amendments clearly identify which filings are tax returns (IIR/UTPR/QDMTT) as opposed to the GIR filing provisions.  

Article 23 of draft law provides that the assessment year is the fiscal year unless the fiscal year ends on 31 December, in which case the assessment year is the year following the fiscal year.

Articles 27/1 provide that Constituent entities and joint ventures established in Belgium, are subject to the QDMTT. If there are a number of entities in the group subject to the QDMTT  the tax due will be determined via a “joint assessment notice” for all Belgian entities.  

This will involve providing for the establishment of a joint registration when several entities of the  same group are established in Belgium.

Article 35 also includes a similar provision for joint tax where there are several constituent entities established in Belgium subject to the UTPR.

Appointment of a General Representative

The 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:

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 these 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.