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Transfer Pricing in Belgium
Belgium implemented formal transfer pricing documentation requirements in 2016, making it one of the later EU jurisdictions to codify TP documentation. Article 185/2 of the Wetboek van de Inkomstenbelastingen 1992 (WIB92) codifies the arm's length principle, while Article 321/8 WIB92 establishes the documentation requirements. Belgium follows OECD Transfer Pricing Guidelines and applies the standard interquartile range (25th–75th percentile). A distinctive feature of the Belgian system is the mandatory annual TP form (formulaire 275TP), which must be filed with the corporate income tax return by companies meeting specified thresholds.
The Belgian TP documentation thresholds are based on company size: operating and financial revenue exceeding €50 million, or total balance sheet exceeding €1 billion, or average annual workforce exceeding 100 FTEs. Companies meeting at least one threshold must prepare a Master File and Local File following OECD Chapter V, and must file the 275TP form. The 275TP form requires disclosure of related-party transactions by category, the methods used, and summary financial information — providing the tax authority with a TP risk assessment tool. Belgian-parented groups with consolidated revenue exceeding €750 million must file a Country-by-Country Report.
Belgium's Service des Décisions Anticipées (SDA) — the ruling commission — historically provided advance rulings on transfer pricing arrangements, including the now-abolished excess profit ruling regime (State Aid decision 2016). Post-State Aid, Belgium still offers advance rulings on TP methodology, but the scope is more limited and the SDA scrutinises substance requirements more carefully. The Bijzondere Belastinginspectie (BBI) — the special tax inspection unit — handles complex TP audits, while routine TP matters are handled by local tax offices. Belgium has coordination centres and distribution centres within its economic landscape, making TP for management fees, distribution margins, and IP licensing particularly relevant.
Belgium TP Quick Reference
Common TP Audit Triggers in Belgium
275TP form showing significant related-party transactions
Belgian entity margins below industry norms
Large management fee or royalty payments to foreign group entities
CbCR data inconsistent with Belgian substance and functions
Business restructurings reducing Belgian taxable profit
Distribution centre or coordination centre arrangements
Belgium vs. OECD Guidelines: Key Differences
Belgium follows OECD IQR (25th–75th). Key features: (1) mandatory 275TP annual disclosure form; (2) threshold-based documentation (€50M/€1B/100 FTE); (3) SDA advance ruling practice (post-State Aid); (4) BBI dedicated TP audit capacity; (5) historical coordination centre and excess profit rulings now abolished.