Mandatory Pillar Two notification deadline extended to 16 September 2024 for MNEs and large domestic groups

On 2 July 2024, the Belgian tax authorities issued an alert regarding the mandatory registration requirement for multinational enterprise (MNE) and large domestic groups that fall within the scope of the Belgian “Pillar Two” rules, noting that the Pillar Two registration deadline (which requires the filing of a notification form) has been extended to 16 September 2024 (inclusive) for those groups that do not need to make Pillar Two tax prepayments during 2024.

For in-scope groups that decide to make prepayments in 2024, the submission deadline is 15 July 2024.

Pillar Two tax prepayments

The Pillar Two legislation provides similar rules regarding tax prepayments as those for corporate tax. Prepayments are not mandatory, but if not made, or not made in full, the tax amount due may increase.

This means, in practice, Pillar Two top-up taxes (imposed in the form of an income inclusion rule (IIR) or a qualified domestic minimum top-up tax (QDMTT)) will be subject to an increase of 9% (for taxes related to the 2024 financial year) if no prepayments are made before the deadline of 20 December 2024 (for calendar year taxpayers). Thus, a tax increase can be wholly or partly mitigated if prepayments are made prior to such deadline.

Please note that the deadline for prepayments is different for taxpayers with financial years that are not a calendar year.

Key requirements for the Pillar Two notification submission

As a reminder, the Pillar Two notification submission is required for in-scope MNE groups and large domestic groups with a Belgian presence. The notification is necessary to obtain a unique Pillar Two group registration number from the Belgian trade register. This is necessary for Pillar Two compliance purposes and to facilitate (pre)payments where Pillar Two top-up taxes are due in Belgium.

Registration is required for in-scope groups with Belgian constituent entities, regardless of the location of the ultimate parent entity (UPE) and irrespective of whether Pillar Two top-up taxes will be due in Belgium.

The Belgian tax authorities’ guidance specifies that every group with at least one Belgian constituent entity must initially register with the Belgian tax authorities using a notification form that is accessible online via the MyMinfin portal.

The key registration and notification requirements are listed below. For a complete list of requirements, please refer to our alert Tax Alert of 30 May 2024.

• Entities: The notification should include information on entities within an in-scope group that have the status of:
  

o Belgian constituent entities;

o UPEs;

o Intermediate parent entities (IPE) or partially-owned parent entities (POPE), wherever located, even if they do not hold an ownership interest in any Belgian constituent entity; or

o Constituent entitles and joint ventures, wherever located, if they are subsidiaries of a Belgian UPE, IPE, or POPE.

• Data requirements: The notification requires the following data points for in-scope constituent entities:

o Entity name;

o Tax identification number (TIN);

o Jurisdiction; and

o GloBE (global anti-base erosion rules) entity classification.

• UPE representative: In-scope groups must include in the notification a natural person who will act as the representative of the UPE for Pillar Two reporting purposes. The representative’s Belgian TIN must be included on the form (for Belgian nationals or Belgian tax resident individuals), or the “BIS” number for other individuals.

• Notification filing entity mandate: One Belgian entity must be selected to submit the notification form. To do this, all the Belgian entities must be included in a mandate agreement, using a template prepared by the Belgian tax authorities in Dutch, French, or German. This document will designate the reporting entity among the Belgian constituent entities. The signed mandate agreement must be filed in PDF format along with the notification form.

Frequently asked questions and common mistakes

The Belgian tax authorities have issued a new set of frequently asked questions (Dutch | French), providing additional guidance on certain requirements  regarding the notification filing. In addition, a list that includes the most common mistakes that can invalidate the filing has been published (Dutch | English | French).

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 also with subsequently streamlining the inclusion of this information in the Pillar Two notification submission and facilitating its transmission to the Belgian tax authorities in the required format.