Changes made to Belgian transfer pricing documentation requirement

On 16 June 2024, Belgium adopted a Royal Decree that modifies the Belgian master file form, local file form and country-by-country notification forms.

These changes were made to align the documentation with the new version of transfer pricing guidelines published by the OECD in January 2022, which detail the treatment of hard-to-value intangibles and the application of transfer pricing in financial transactions.

The amended forms, which will facilitate risk assessments, are scheduled to be used starting 1 January 2025. 

Changes to the Master file form

While form 275.MF remains unchanged, reporting entities will now need to include a more comprehensive description of the value chain analytical framework and a functional analysis of the group, within the description of business activities (box II of the master file).

In addition, reporting entities must now indicate which group entities perform a DEMPE function for intangible assets (box III of the master file). A list of intangible assets transferred or used that are hard to value must also be added.

Finally, intra-group financing should now be described in more detail (box IV of the master file). Additional information on the principles used to obtain market conformity of financial relations will be added.

Changes to the Local file form

Local file form 275.LF has not changed substantially. Minor amendments include the requirement to include the tax identification number of parent entities, subsidiaries, main competitors and permanent establishments.

Changes to the country-by-country notification form

Country-by-country notification form 275.CBC NOT has been only slightly amended. In the new form, the type of notification must be specified (e.g. first notification, an amendment to the previous notification, or a termination of the notification obligation).

Entry into effect

The new forms must be used for financial years beginning on or after 1 January 2025.

For more information on this new legislation and if you have any questions related to transfer pricing documentation requirements, contact your CMS client partner or the following CMS experts.