Belgium Issues its QDMTT Return

General

For entities subject to the QDMTT, a QDMTT return is required to be filed under Article 52 of Belgium’s Minimum Tax 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 but is unlikely to now change as this follows a consultation of a previous draft of the QDMTT Return that lasted until November 8, 2024.

The QDMTT Return is divided into 9 sections:

•  Details of the entities/MNE Group subject to the QDMTT

•  Corporate Structure

•  Available Safe Harbours

•  Available GloBE Elections

•  Calculation of the QDMTT

•  Advance Payments Made

•  QDMTT Payable

•  Contact Details

•  Signature

Note that Belgium’s QDMTT does not apply the local accounting standard rule or the local currency election, as provided in the OECD Administrative Guidance. Therefore, detailed inputs for these are not required.

Details of the entities/MNE Group subject to the QDMTT

Details required include:

•  Identification of the taxpayer(s) subject to the QDMTT (Tax ID, Legal Name)

•  Identification of the Belgium-based group entity or designated local entity (Tax ID, Legal Name, Address, Banking Information)

•  Identification of the MNE Group/Domestic Group (Designation of the group, Pillar 2 identification number, Start and End date of the reporting year, Information on the consolidated financial statements, Presentation currency used for the preparation of the consolidated financial statements of the UPE, Exchange rate for the conversion of the presentation currency to euro for the reporting year (if relevant))

Corporate Structure

This requires information on the UPE, constituent entities, ownership structure and the identification of any excluded entities.

This includes basic information like the relevant jurisdiction and tax ID’s as well as the GloBE status and type of excluded entity. The end of the form has a number of designations following the format of the GloBE Information Return (eg code GIR 301 is used for a constituent entity, code GIR 302 is for a flow-through entity etc).

Safe Harbours/De Minimis

If the de minimis exclusion or a relevant safe harbour applies this is provided in this section. This includes the Permanent Safe Harbour (only the NMCE Simplified Calculations currently applies) and the Transitional CbCR Safe Harbour. In addition, the relevant test that is met for the relevant Safe Harbour to apply must be provided (eg code GIR 1203 for the de minimis test for the Transitional CbCR Safe Harbour).

Elections

Any GloBE elections that are made are to be identified in this section.

This includes all of the GloBE elections in the OECD Model Rules and Administrative Guidance (except for the local currency election as the local accounting standard rule does not apply), including:

• Stock-Based Compensation Election;

• Election to use the Realization Method;

• Election to Spread Capital Gains;

• Consolidation Election;

• Unclaimed Accrual Election;

• GloBE Loss Election;

• Prior Year Adjustment Election;

• De minimis Election;

• Taxable distribution Election;

• Tax transparency Election;

• Distribution Tax Regime Election;

• Excluded Entity Election;

• Substance-Based Income Exclusion Election;

• Deemed Disposal of Assets Election;

• Excess Negative Tax Carry-Forward Election;

• Debt Release Election;

• Equity Investment Inclusion Election;

• Foreign Exchange Hedge Election;

• Portfolio Shareholding Election.

It also includes the provisions for qualified ownership interests and the Election in the June 2024 OECD Administrative Guidance to exclude the allocation of all deferred tax expenses and benefits to CFCs, PEs, Hybrids and Reverse Hybrids. Note that these are not currently in Belgium’s Pillar 2 Law (but presumably will be included in the next amendment).

Calculation of the QDMTT

Relevant details are inputted here to calculate the QDMTT liability.

This follows the standard GloBE calculation of:

(Adjusted Covered Taxes/ Net Pillar Two GloBE Income) x excess profit) + additional top up tax

Excess profit is Net Pillar Two GloBE Income less the Substance-Based Income Exclusion.

Therefore details inputted in the form include:

• Net income or loss from the financial accounts

• GloBE Income or loss

• Current tax expense

• Adjusted covered taxes (after the mandatory exclusion of taxes pushed down to PEs, CFCs, Hybrids and taxes on distributions (aside from withholding tax)

• The amount of the Substance-Based Income Exclusion

• Any Additional Top-Up Tax

• The recalculation of the QDMTT into euros

It also requires the specific identification of the amounts of taxes excluded from being pushed down for QDMTT purposes, for PEs, CFCs, Hybrids and taxes on distributions (aside from withholding tax)

Advance Payments

Belgium has a system of advance tax payments for corporate income tax. This also applies for top-up tax under Pillar Two (see the Royal Decree of July 7, 2024). Therefore details of the advance payments made must be inputted in order for them to be credited from the QDMTT liability.

QDMTT Payable

This section brings in relevant information on the QDMTT liability and advance payments made from the previous two sections to determine if any additional QDMTT is payable or if a refund is due.

Contact Details

Details of the contact person designated by the filing group entity are required to be detailed in this section. This includes the name, address, email address and phone number.