Key takeaways 

• Deadline for groups NOT intending to make advance payments in 2024: 16 September 2024 (extended).
• Deadline for groups intending to make advance payments in 2024: 13 July 2024 (unchanged, but extended to the next business day; 15 July 2024, as explained in the FAQ, see below).
• Answers to some practical queries are published in the FAQ (NL/FR) and demonstrate a very formalistic approach on behalf of the Belgian tax authorities.

In depth

Extension of notification deadline

Under the 29 May 2024 Royal Decree, Belgian entities of a multinational group are required to file a P2 notification form in order to register with the Crossroads Bank of Enterprises (CBE) and obtain a CBE number that is to be used in future P2 compliance. All relevant parties are required to comply within 30 days after the first day of the first year in scope of P2. This deadline is extended to 15 July 2024 for taxpayers already subject to P2 rules at the time of the publication. For further details, please refer to our previous client alert.

The Belgian tax authorities have yesterday (2 July 2024) published an administrative tolerance for multinational and large-scale domestic groups that do not make advance payments in 2024 for the domestic top-up tax or IIR. The notification deadline for these groups is extended until 16 September 2024.

Please be advised that this administrative tolerance does not apply to multinational and large-scale domestic groups intending to make advance payments in 2024.

FAQ  

Furthermore, on 21 June 2024, the Belgian tax authorities published an FAQ (see the FAQ here: NL / FR) with respect to the P2 registration requirements that were implemented by Royal Decree in May 2024.

It appears from the FAQ that the tax authorities take a very formalistic approach, which in certain cases will lead to over-reporting (for example on the ownership structure, see below). 

Some of the aspects covered by the FAQ are: 

• Deadline: As a general rule, the P2 registration requirement must be filed within 30 days of the first day of the fiscal year in which the group first falls within the scope of the Belgian P2 law. However, due to the newly introduced requirements, the earliest deadline was Saturday 13 July 2024. The FAQ clarifies that the deadline is extended to a working day in such case, i.e., Monday 15 July 2024 (unless the aforementioned administrative tolerance applies). 
• UPE representative: the individual who represents the UPE for P2 purposes needs to be mentioned, including the Belgian national number or bis number. Should this person not have a Belgian national number or bis number (which is the case for most foreign groups), a bis number should be requested through Belgian IDpro (link) or Limosa. Note that it takes several days to obtain. 
• Safe Harbor: The P2 notification obligation applies regardless of whether a group elects to apply a safe harbor. The purpose of the notification is to identify the group for P2 purposes.
• Proxy for notification: one power of attorney template must be signed by all Belgian constituent entities or UPE(s) appointing another constituent entity or UPE to carry out the notification. It must each time be signed by the representative of the constituent entity who has the power to bind the entity. The signing is preferably done in a digital way. 
• Ownership structure (Part III of the notification form): All Belgian and foreign UPE, IPEs and POPEs must be listed. The notification form concerns the entire group structure at (intermediate) parent level and is therefore not limited to the ownership structure of the Belgian constituent entity(-ies). In addition, if an UPE, IPE or POPE is located in Belgium, all companies held by this company must be listed as well.
• TIN at the top (Part III of the notification form): For the purposes of the reporting form, the "TIN at the top" is the TIN (tax identification number) of the direct parent entity of the relevant constituent entity.
• Contact point (Part IV of the notification form): This is the entity that is responsible for the notification. However, a person external to the entity (e.g., an external consultant) may be indicated as the person to be contacted in case of questions regarding the registration.

Contact us

Consult with your Baker McKenzie liaison to ensure proper compliance with Belgian P2 rules. Our Global Pillar 2 team has extensive experience in international tax matters and can provide tailored advice for your specific situation and can assist you in:

• Identifying Belgian constituent entities and determining whether they are covered by Belgian P2 legislation.
• Completing and submitting the notification form.
• Any other questions relating to P2.

We are here to help you navigate this new regulation and ensure your company remains compliant.