Wednesday, 18 March 2015

Belgium initiates new wave of transfer pricing audits and considers mandatory transfer pricing documentation

The Belgian tax authorities have opened a new season of transfer pricing audits, similar to those initiated in 2013 and 2014. Approximately 200 corporations have been selected on the basis of data-mining for an in-depth audit on their transfer pricing arrangements. A team of skilled tax inspectors deals with these investigations.

The Belgian Minister of Finance recently also shared some new insights on the government's ambitions in the area of transfer pricing as part of his reply to a parliamentary question. The Minister referred to the OECD project in relation to Base Erosion and Profit Shifting (BEPS) and endorsed the recommendations in relation to transfer pricing documentation and country-by-country reporting (Action Point 13). Following the OECD recommendations of September 2014, the Belgian Government is currently considering the introduction of formal transfer pricing documentation requirements.
Source & more info: PwC