Pillar 2 legislation gets technical update
Pillar 2 legislation gets technical update
The Belgian minimum tax for multinationals is being refined. Good news: this isn't about new burdens or higher rates, but about clarifications that make the law more readable and applicable. Still, there are several changes that impact how your organisation files returns, who's responsible, and how much time the tax authorities have for audits.
Since the Pillar 2 legislation came into force in December 2023, it's become clear that alignment with existing Belgian tax procedures (particularly Title VII of the Income Tax Code 1992) wasn't always seamless.
The new amendment addresses this without touching the core: the 15% minimum rate and calculation method remain unchanged.
The new amendment addresses this without touching the core: the 15% minimum rate and calculation method remain unchanged.
One return per jurisdiction
One of the most significant practical changes: the Qualified Domestic Minimum Top-up Tax (QDMTT) and UTPR top-up tax are now explicitly recognised as 'jurisdictional taxes'. This has always been the principal, but the principal is now embedded in the law.
What does this mean in practice? If your group has multiple entities in Belgium, you'll file one joint return and receive one collective assessment, instead of separate assessments per company. This better reflects the economic reality of multinational groups and should prevent discussions about who exactly is liable for tax.
Does your group have multiple Belgian entities? You'll now also need to designate a general representative. This entity becomes the point of contact with the tax authorities: filing returns and reports, paying the tax, and handling any administrative procedures.
Important: you must communicate this choice to the FPS Finance. If you don’t make a choice, then a cascade rule automatically designates a representative.
What does this mean in practice? If your group has multiple entities in Belgium, you'll file one joint return and receive one collective assessment, instead of separate assessments per company. This better reflects the economic reality of multinational groups and should prevent discussions about who exactly is liable for tax.
Does your group have multiple Belgian entities? You'll now also need to designate a general representative. This entity becomes the point of contact with the tax authorities: filing returns and reports, paying the tax, and handling any administrative procedures.
Important: you must communicate this choice to the FPS Finance. If you don’t make a choice, then a cascade rule automatically designates a representative.
Procedural rules clarified
All communication with the FPS Finance now runs digitally via a secure platform, so make sure your systems and processes are aligned accordingly.
The law now also makes a strict distinction between the information return (GloBE Information Return or GIR in OECD terminology) and the tax return that initiates the formal Belgian assessment procedure. This might seem like a detail, but it's crucial for correct procedural application. The concept of 'filing constituent entity' has also been refined. This is the entity that files the information return on behalf of the group and handles the return for the domestic top-up tax.
Through technical amendments, the rules on domestic top-up taxes now also apply to joint ventures and related parties. If your group is active in joint venture structures, review carefully whether this change impacts your Pillar 2 obligations.
The law now also makes a strict distinction between the information return (GloBE Information Return or GIR in OECD terminology) and the tax return that initiates the formal Belgian assessment procedure. This might seem like a detail, but it's crucial for correct procedural application. The concept of 'filing constituent entity' has also been refined. This is the entity that files the information return on behalf of the group and handles the return for the domestic top-up tax.
Through technical amendments, the rules on domestic top-up taxes now also apply to joint ventures and related parties. If your group is active in joint venture structures, review carefully whether this change impacts your Pillar 2 obligations.
Adjusted deadlines
Two timing changes worth noting down. The minimum tax is assessed within a minimum of 6 months after your return is received by the tax administration. This aligns with the standard rules from income taxes.
Additionally, the tax authorities now have 6 years for auditing and assessing the minimum tax, somewhat longer than before.
The reason? Pillar 2 cases are exceptionally complex due to international group structures and large volumes of data. So, make sure your documentation and substantiation remain in order, even for older financial years.
The law was published in the Belgian Official Gazette on 31 December 2025 and entered into force on 10 January 2026. The changes therefore apply to your ongoing obligations.
These technical refinements make Pillar 2 legislation clearer, but applying it still requires precision. Particularly the new procedural rules, the choice of group representative, and the longer audit period deserve attention in your compliance process.
Additionally, the tax authorities now have 6 years for auditing and assessing the minimum tax, somewhat longer than before.
The reason? Pillar 2 cases are exceptionally complex due to international group structures and large volumes of data. So, make sure your documentation and substantiation remain in order, even for older financial years.
The law was published in the Belgian Official Gazette on 31 December 2025 and entered into force on 10 January 2026. The changes therefore apply to your ongoing obligations.
These technical refinements make Pillar 2 legislation clearer, but applying it still requires precision. Particularly the new procedural rules, the choice of group representative, and the longer audit period deserve attention in your compliance process.
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