On July 15, 2024, Belgium published two Royal Decrees dated June 16, 2024, which introduce updated models for the Local File Form (275.LF) and the Master File Form (275.MF). These new forms are mandatory for qualifying taxpayers and must be submitted via the online portal for financial years starting on or after January 1, 2025. Additionally, the country-by-country notification form (275.CBC.NOT) has been revised.
KEY CHANGES IN THE NEW ROYAL DECREES
These decrees replace the previous ones from October 28, 2016, concerning transfer pricing documentation (article 321/5 §4 and §5 of the Belgian Income Tax Code). They introduce several significant updates:
LOCAL FILE FORM (275.LF):
- Detailed intercompany transactions per business unit with cross-border transactions over EUR 1 million must be separately listed for each country.
- Transfer pricing documentation and framework agreements or model contracts must now be submitted in a readable PDF format.
- Additional details, such as Tax Identification Numbers for competitors and specifics on Cost Contribution Agreements, APAs, rulings, and in-house insurance policies, are required.
MASTER FILE FORM (275.MF):
- An analytical framework for the value chain and functional analysis of the group must be included.
- More detailed information on DEMPE (Development, Enhancement, Maintenance, Protection, and Exploitation) functions concerning intangibles is required.
- A comprehensive description of transfer pricing policies for financial arrangements, including financial guarantees and captive insurance, is now mandatory.
COUNTRY-BY-COUNTRY NOTIFICATION (275.CBC.NOT):
- The form now requires indicating whether it is a first notification, a modification, or a termination of the notification obligation.
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