Mandatory Pillar Two registration requirement: Immediate action needed (update)

Multinational enterprises (MNEs) and large-scale domestic groups that fall within the scope of the Pillar Two rules need to register in Belgium’s Commercial Register (Crossroads Bank for Enterprises). Registration requires a specific notification form to be submitted within a tight deadline.

 

The notification form must be submitted by 13 July 2024 for Pillar Two reporting periods that started between 1 January 2024 and 13 June 2024. If the first Pillar Two reporting period starts after 13 June 2024, the deadline will be 30 days after the start of the first Pillar Two reporting year (for prior coverage of Belgium’s Pillar Two rules, see the tax alert dated 8 December 2023).

Who needs to act?

The following entities are in scope of the Pillar Two rules and should take action:
  • MNEs and large domestic groups with consolidated annual revenues exceeding EUR 750 million in two of the four previous fiscal years; and 
  • Entities subject to Pillar Two with a Belgian nexus (Belgian constituent entities (BCEs), regardless of whether the ultimate parent entity (UPE) is in Belgium or abroad.
As a reminder, under Pillar Two, these entities are expected to effectively pay at least a 15% tax on their profits.

What needs to be done?

  • Ensure Myminfin access: The notification form must be submitted through the Myminfin portal, so the first action point is to ensure that you (or your local tax advisor) have access to the portal. 
  • Gather required Information: The notification form requests detailed information about the group structure, including:
    • Legal entities (name, jurisdiction, tax ID, Pillar Two qualification)
    • Details on the UPE
    • Intermediary parent entities (if any)
    • Partially owned parent entities (if any)
    • Other Belgian entities (if any)
    • Details of consolidated financial statements (CFS)
    • Reporting period start and end dates
    • Point of contact information (Belgian entity filing the form)
  • Register with the Belgian tax authorities: Complete and submit the Pillar Two notification form via the MyMinfin platform. The form must be in XML format created in accordance with the XSD schema as defined by the tax authorities. The form (including official guidance) was published in Dutch and French.  
The Pillar Two notification form must be completed by:
  • The Belgian UPE if it is located in Belgium;
  • The entity designated as the Pillar Two agent if there are several UPEs established in Belgium; 
  • The BCE if there is no Belgian UPE and only one BCE in the country; or
  • The BCE designated as the Pillar Two agent if there is no Belgian UPE and there are multiple BCEs in the country. 
The agent must be so designated via a specific online form provided by the Belgian tax authorities and digitally signed and submitted with the Pillar Two notification form.

Registration deadline

The Pillar Two Notification Form must be filed electronically no later than 30 days after the start of the first Pillar Two reporting year. However, to give those who have already started or will soon start their first reporting year sufficient time to collect the required information, the notification deadline is extended to 45 days after the publication of the form in the official gazette. With the publication of the form on 29 May 2024, the notification deadlines are:
  • 13 July 2024 if the first Pillar Two reporting year started between 1 January 2024 and 13 June 2024 (both dates included). Since 13 July is a Saturday, taxpayers have until Monday, 15 July at the latest to file the form. 
  • 30 days after the start of the first Pillar Two reporting year for Pillar Two reporting periods starting after 13 June 2024.

BDO comments

Completing the notification form necessitates a thorough understanding of your group's Pillar Two scope and the qualification of each entity. Taxpayers should gather and review the required information as soon as possible. While there are no penalties imposed for missing the deadline, late or incorrect filing will result in a delay in the registration in the Crossroads Bank for Enterprises. In that case, the taxpayer cannot invoke the delayed registration to avoid sanctions resulting from the inability to comply with other Pillar Two obligations in Belgium (e.g., timely prepayments, timely filing of the QDMTT return, etc.).
Affected taxpayers should act promptly and factor in an additional one to two weeks if the BCE does not yet have access to the Myminfin portal. 

BDO Belgium can help

Our tax team has extensive knowledge of Pillar Two and can assist you with:
  • identifying BCEs and determining if they are in-scope of the Belgian Pillar Two legislation
  • completing the notification form
  • electronically submitting the form
  • addressing any additional Pillar Two related questions
Do not hesitate to contact one of the experts mentioned below or your trusted BDO tax contact for support. 

Olivier Michiels

Paul Ampe

Jonathan Collard

Jeroen Sevens