The filing date for the local file form (form 275 LF) as part of the mandatory transfer pricing documentation in Belgium is approaching for a large amount of Belgian entities that form part of a multinational group.

For many Belgian entities it will be the fourth time that the form 275LF will be submitted, and hence it might become business as usual whereas for others still some significant effort might be necessary.

Filing date

Please note that the filing date for the local file form 275 LF, including the general part (section A) and the detailed information form (section B), is the same as for the corporate tax return or the non-resident corporate tax return. This means, regarding assessment year 2020, in particular income from 1 January 2019 onwards, the ultimate filing date until 24 of September 2020.

Thresholds

The thresholds for the local file form remain unchanged. As a result, Belgian group entities (and permanent establishments) are obliged to submit a local file form 275 LF for assessment year 2020 if one of the following criteria is exceeded on the basis of the financial year immediately preceding the last completed financial year, assessment year 2019:

• a total of 50 million euros in operating and financial income excluding non-recurring income;
• a balance sheet total of 1 billion euros;
• the average annual number of employees of 100 full-time equivalents.

The detailed information form (section B), as part of the local file form, should only be completed if at least one of the business units - as defined and included in section A of the local file form - within the Belgian group entity exceeds the threshold of a 1.000.000,00 euros cross-border transactions with group entities in the last closed financial year. The detailed information form must be completed for each business unit exceeding this threshold.

The administration provides for an additional and optional materiality threshold for the benefit of the submitters. This materiality threshold was set at 25,000 euros per transaction which is not part of the company’s core business and this option may be selected for tables in B3, B4, B5 and B6. If this threshold is opted for, it should be applied consistently to all business units for which a detailed information form has to be completed.

Tine Slaedts – Partner (tine@TAeconomics.com)

Ben Plessers – Senior Manager (ben@TAeconomics.com)

Heleen Van Baelen – Senior Manager (heleen@TAeconomics.com)