| Image Credits: Vincent Van Peteghem, Belgian economist and politician of CD&V who has been serving as Minister of Finance, by EPP

Belgium’s tax authorities issued the initial draft of the Qualified Domestic Minimum Top-Up Tax (QDMTT) return, which will be required for Belgian branches of multinational enterprise (MNE) groups subject to Belgium's Pillar Two minimum tax requirements. 

The draft is currently open for public feedback until November 8, 2024. Stakeholders may send comments to the designated email (pillar2@minfin.fed.be), and the tax authority’s website provides submission instructions in Dutch and French languages.

BELGIAN QDMTT FRAMEWORK

The QDMTT applies domestically within Belgium, targeting both large Belgian and multinational groups that fail to meet the 15% minimum ETR within the country. Effective December 31, 2023, the QDMTT applies starting January 1, 2024, for taxpayers on a calendar-year basis. Belgian entities under Pillar Two must submit this return annually, with the first submission deadline set for November 30, 2025.

If an MNE has multiple entities in Belgium, one constituent entity (CE) will be designated to handle the QDMTT filing. The group may also assign any Belgian CE to make the QDMTT payment, or it will default to the CE with the highest Pillar Two taxable income if no designation is made.

KEY SECTIONS IN THE QDMTT DRAFT RETURN

The draft QDMTT form includes detailed requirements in the following sections, focusing on robust data collection for compliance:

• Identification Details: Information on the filing entity, designated contact personnel, and identification of the Pillar Two MNE or domestic group.

• Group Structure Overview: Information on the group’s ultimate parent entity, all Belgian entities, and joint ventures, including any exempted entities.

• Safe Harbour Data: Criteria for testing safe harbour eligibility, such as temporary or transitional country-by-country exclusions, which may apply to Belgian CEs.

• Elective Choices: Jurisdiction-specific and entity-specific election options regarding the QDMTT calculation.

• QDMTT Calculation Summary: Required financial data for calculating the QDMTT, including Financial Accounting Net Income or Loss (FANIL), GloBE income or loss, tax expenses, and adjusted taxes.

• Prepayment Summary: Records of prepayments for the QDMTT and any corporate tax-related prepayment surpluses.

• Final Payable Calculation: Final QDMTT payable per subgroup, including a calculation that adjusts for prior prepayments.

DRAFT RETURN IS AVAILABLE TO DOWNLOAD TRANSLATED TO ENGLISH HERE:

• QDMTT Return ENG-FR (PDF) 

 SOURCES/ RECOMMENDED READ:

• Aangifte binnenlandse bijheffing [Ontwerp] - Déclaration national complémentaire [Projet] | FOD Financiën - SPF Finances

• Draft Belgian Qualified Domestic Minimum Top-up Tax return published | Tax Alerts | Deloitte Belgium