Draft Belgian Qualified Domestic Minimum Top-up Tax return published

On 18 October 2024, the Belgian tax authorities published on their website the first draft (available in Dutch and French only) of the Belgian Qualified Domestic Minimum Top-up Tax (QDMTT) return. This form must be submitted by Belgian entities of multinational enterprise (MNE) groups subject to the Belgian global minimum tax (“Pillar Two”).

Comments and feedback on the draft QDMTT return may be sent to the Belgian tax authorities by 8 November 2024 via the dedicated email address pillar2@minfin.fed.be. Instructions (Dutch I French) on how to provide feedback are available on the tax authorities’ website.

Background

Pillar Two is a coordinated set of rules designed by the OECD and adopted by most European and developed countries to ensure that large domestic and multinational groups are subject to a minimum effective tax rate (ETR) of 15%. Groups within scope are those with consolidated annual revenue exceeding EUR 750 million for at least two of the four previous years. The minimum ETR is achieved by imposing top-up taxes to raise a group’s ETR to 15% in each jurisdiction in which it operates.

Belgian QDMTT

The Belgian QDMTT is the domestic top-up tax imposed on large domestic and multinational groups that do not reach the minimum ETR of 15% for their Belgian operations. The QDMTT came into effect on 31 December 2023 and first applies as from 1 January 2024 for calendar year taxpayers.

Belgian entities subject to Pillar Two rules must submit a QDMTT return annually, within 11 months after the end of the reporting year. For calendar year MNE groups, the first Belgian QDMTT return will need to be filed by 30 November 2025.

If the MNE group has more than one constituent entity (CE) in Belgium, one Belgian CE will be required to submit the QDMTT return on behalf of the others.

In addition, MNE groups can decide which Belgian CE pays the Belgian QDMTT. If no entity is nominated, the QDMTT is payable by the CE with the highest taxable income for Pillar Two purposes.

QDMTT reporting requirements

The draft QDMTT return published would require extensive data reporting in the following sections:

• Identification: Information on the CE responsible for filing the Belgian QDMTT return, the designated contact person for the filing, and details of the Pillar Two multinational or domestic group.

• Group structure: Information on the ultimate parent entity of the group, the Belgian group entities (including CEs and joint ventures), and any excluded entities.

• Safe harbours: Information necessary for testing the applicability of permanent or temporary safe harbour regimes to the Belgian CEs (e.g., transitional country-by-country safe harbours, de minimis exclusion).

• Elections: Election choices made by the group per jurisdiction or per CE regarding the Belgian QDMTT calculation.

• Calculation of the Belgian QDMTT: A summarised overview of data required for calculating the Belgian QDMTT per subgroup, including Financial Accounting Net Income or Loss (FANIL), GloBE income (or loss), tax expense accrued in financial accounts, and adjusted covered taxes.

• Prepayments: An overview of prepayments made, including those related to Pillar Two as well as any excess prepayments made for corporate income tax purposes.

• Calculation of the Belgian QDMTT payable taking into account prepayments made: Calculation of Belgian QDMTT due per subgroup.