December 5, 2019
Belgium issues draft mandatory disclosure regime legislation
On 26 November 2019, the Belgian Government published draft legislation and explanatory notes addressing the implementation of the European Union (EU) Directive on the mandatory disclosure and exchange of cross-border tax arrangements (referred to as DAC6 or the Directive). Under DAC6, taxpayers and intermediaries are required to report cross-border reportable arrangements from 1 July 2020. However, reports will retrospectively cover arrangements where the first step is implemented between 25 June 2018 and 1 July 2020.1
The Belgian draft legislation is subject to the formal legislative process and is unlikely to be amended before final enactment.
If implemented as currently proposed, the Belgian Mandatory Disclosure Rules (MDR) legislation will be broadly aligned to the requirements of the Directive.
The newly issued guidance provides clarity on the interpretation of the Belgian MDR legislation and how the Belgian Government anticipates the reporting process to operate.
The key highlights of the Belgian draft legislation and guidance are summarized below.
Determining if there is a reportable cross-border arrangement raises complex technical and procedural issues for taxpayers and intermediaries. Taxpayers and intermediaries who have operations in Belgium should review their policies and strategies for logging and reporting tax arrangements so that they are fully prepared for meeting these obligations.
A detailed Global Tax Alert is forthcoming.
1. See EY Global Tax Alert, EU publishes Directive on new mandatory transparency rules for intermediaries and taxpayers, dated 5 June 2018.
For additional information with respect to this Alert, please contact the following:
Ernst & Young Tax Consultants CVBA, Antwerp
Ernst & Young Tax Consultants CVBA, Brussels
Ernst & Young LLP (United States), Belgian Tax Desk, New York