BELGIUM ADOPTS ENTITY-APPROACH CFC RULES

The taxation condition is met for a foreign company or PE that is either (i) not subject to income tax or (ii) is subject to income tax that amounts to less than half of the Belgian corporate income tax that would have been due if the for eign company or PE had been established in Belgium. The Belgi...

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Bibliographic Details
Published inJournal of International Taxation Vol. 35; no. 4; pp. 20 - 22
Main Authors Heynickx, Jochen, Moreau, Peter, Smeets, Arne, Desmet, Bart
Format Trade Publication Article
LanguageEnglish
Published Boston Thomson Reuters (Tax & Accounting) Inc 01.04.2024
Subjects
Capital gains
Corporate income tax
Corporate profits
Foreign tax credits
International taxation
Permanent establishment
Taxation
Voting rights
Belgium
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Summary:The taxation condition is met for a foreign company or PE that is either (i) not subject to income tax or (ii) is subject to income tax that amounts to less than half of the Belgian corporate income tax that would have been due if the for eign company or PE had been established in Belgium. The Belgian controlling company pro vides evidence that the CFC is carrying out a substantial economic activity, supported by personnel, equipment, assets and buildings defined as "the offering of goods or services on a particular market." Belgian companies are required to dis close the existence of a CFC in their cor porate income tax return. Considering the complexity of the rules, the broad reporting obligation and the specific "Belgian" calculation requirements, a pro active approach is highly recommended as the rules apply as from assessment year 2024.
ISSN:1049-6378