Action required: Mandatory Pillar Two notification in Belgium for MNEs and large domestic groups

On 21 May 2024, the Belgian tax administration issued new guidance on the mandatory registration requirement for multinational enterprise (MNE) groups and large Belgian domestic groups under the Belgian “Pillar Two” rules (Dutch | French). The royal decree implementing the registration requirement was published in the Belgian official gazette on 29 May 2024 (Dutch | French).

In-scope groups with a presence in Belgium must submit an extensive notification form to obtain a Pillar Two group registration number from the Belgian trade register (the Crossroad Bank for Enterprises (CBE)).

Affected entities have limited time to act, as the form must be submitted by the later of two deadlines: 45 days from the publication date of the royal decree in the official gazette (i.e., 13 July 2024—this date will be applicable for calendar year tax payers) or 30 days after the start of the first Pillar Two reporting year.

Guidance included in the royal decree of 15 May 2024

• Filing deadline: For in‐scope groups whose first Pillar Two reporting year is already underway (e.g., calendar year groups) the due date for submitting the Pillar Two notification is 13 July 2024, 45 days after publication of the royal decree. 
• Notification requirements unchanged: The approach to the information required in the notification form remains unchanged (see below for specific requirements). All in-scope groups must file the extensive notification, irrespective of whether a top-up tax is due in Belgium. 
• Online filing portal is open: The relevant pages on the MyMinFin portal to submit the notification form have been opened. 
• Prepayment option: The MyMinfin portal now includes the functionality to indicate if the group anticipates making a prepayment in Belgium during the first Pillar Two reporting year. Groups indicating they will make prepayments will be prioritized for the registration request.
• Incorrect or incomplete notifications: Upon successful notification, the Belgian tax administration will register the MNE group with the CBE. Subsequently, the Pillar Two group registration number will be sent via email to the entity that undertook the registration process. If the notification is submitted incorrectly or is incomplete, the tax administration will first contact the group to make the necessary adjustments before submitting the registration request to the CBE. 
• Late notifications: The royal decree is silent regarding specific penalties for late notifications. However, the decree indicates that timely and accurate registration with the CBE is crucial for facilitating interactions with FPS Finance regarding the Pillar Two minimum tax. Late notification will result in delayed registration with the CBE and may complicate compliance and the exercise of rights related to the minimum tax (e.g., prepayments). Any resulting sanctions cannot be mitigated by citing late or incorrect notification as a circumstance.

When is action required?

Under the general provisions, in-scope groups must submit their Pillar Two notification no later than 30 days after the start of their first reporting year within the scope of the Belgian Pillar Two rules, which became applicable for reporting years starting after 31 December 2023.

For in-scope groups whose first Pillar Two reporting year is already underway or will be starting shortly, a grace period of 45 days will be granted after the publication of the royal decree of 15 May 2024 on 29 May 2024. This extended timeline is particularly crucial for calendar year in-scope groups subject to the Belgian Pillar Two rules.

The short timeframe for notification and registration is driven by the deadline for making prepayments for top-up taxes under the income inclusion rule or in the form of the qualified domestic minimum top-up tax, which are due by 20 December 2024 for the first year for which the Pillar Two provisions apply.

Who needs to register and what is the registration process?

According to the law of 19 December 2023, as amended by the law of 2 May 2024 (see our Tax Alert of 6 May 2024), in-scope MNE groups and large Belgian domestic groups are required to obtain a unique Pillar Two group registration number from the CBE. This is necessary for Pillar Two compliance and to facilitate (pre)payments where a Pillar Two top-up tax is due in Belgium.

The registration obligation encompasses all in-scope groups with Belgian constituent entities, regardless of the location of the ultimate parent entity (UPE) and irrespective of whether top-up taxes will be due in Belgium.

The Belgian tax administration’s guidance specifies that every group with at least one Belgian constituent entity must initially register with the Belgian tax administration using a notification form. This form will shortly be accessible online via the “MyMinfin” portal. The entity responsible for submission of the notification form is determined as follows:

• If the UPE is located in Belgium, this entity is responsible for submission of the notification form. If there are multiple Belgian-based UPEs, a designated representative must be selected to submit the form.

• If the UPE is not based in Belgium and only one group entity operates in Belgium, that entity must submit the form.

• If the UPE is not based in Belgium and multiple group entities operate in Belgium, a designated representative must be selected to submit the form.

To select a representative, a separate form must be filed along with the notification form.

Upon successful notification, the Belgian tax administration will register the group with the CBE. Subsequently, the Pillar Two group registration number will be sent via email to the entity that undertook the registration process.

What details must be included on the notification form?

The online filing platform on MyMinfin is now open. The content of the notification form has been published in Dutch and French, and the XML conversion tool is available in Dutch, English, and French.

The notification form requires comprehensive information about the group and is divided into four main sections. Screenshots of the requirements from the XML conversion tool are provided below for reference.

Section I: MNE group information 

This section requires general information about the MNE group, including the group name, the start and end dates of the reporting year, the address of the UPE that prepares the consolidated financial statements, the legal form of the entity, and the nature of the group.

Section II: Consolidated financial statements 

This section requires information regarding the consolidated financial statements of the MNE group or the large Belgian domestic group. Within this section, groups will be asked to provide details including which consolidation standards have been used (e.g., IFRS, US GAAP, BE GAAP), where the consolidated financial statements are published online, and which currency is used.

Section III: MNE group structure  

This section requires information regarding the ownership structure of the group, including details of the UPE, intermediate parent entities (IPEs), and/or partially owned parent entities (POPEs), irrespective of whether they are located in Belgium. For each entry included in this section, it is important to determine the “GloBE” (Global Anti-Base Erosion) status of that entity. Additional analysis may be required to determine what needs to be included in the notification if there are multiple IPEs or other specific entities, such as POPEs, in the structure.

Section IV: Point of contact 

This section requires information regarding the entity that will function as the contact point for the group, including the name, tax identification number, address, and email address.

How Deloitte Belgium can help

Deloitte Belgium can provide comprehensive support and guidance on all aspects of the Belgian Pillar Two notification requirements. Our user-friendly Pillar Two tools can assist not only with collecting the required data and analysing entity GloBE classification requirements, but subsequently streamlining the inclusion of this information in the Belgian Pillar Two notification form and facilitating its transmission to the Belgian tax administration in the required format.