BELGIUM Law and Practice Contributed by: Aldo Engels, Emile Bauwens, Emma Parduyns and Vincenzo Vilardi, Loyens & Loeff
which the transaction relates (or eight months before the final deadline for filing the tax return for companies who do not keep their accounts by calendar year). In practice, the Ruling Com - mission requires that a subsequent request for a renewal of the APA be filed at the latest three to six months before the expiry of the existing APA. For bilateral and multilateral APAs, a roll-back is possible (see 7.8 Retroactive Effect for APAs ). 7.6 APA User Fees APAs can be obtained free of cost from the Rul - ing Commission, the Belgian competent author - ity. 7.7 Duration of APA Cover In general, unilateral tax rulings are valid for a maximum period of five years unless the subject of the topic allows for a different period. Fol - lowing a recent policy change, transfer pricing APAs confirming the pricing of a transaction are only valid for three years (in line with the consid - ered validity period of the underlying benchmark study). 7.8 Retroactive Effect for APAs A formal roll-back is not possible in the context of unilateral APAs in Belgium. For practical reasons, the Belgian competent authority authorises initiating a bilateral APA on the first day of the financial year, even if transac - tions have already taken place between the first day of the financial year and the date of filing the application, provided that the application is filed no later than on the last day of the financial year. For example, a person may submit a request for a multilateral APA on 25 July 2023 in which they ask for certainty for a period of five accounting years, namely from 1 January 2023 to 31 Decem -
ber 2027 (inclusive). Even though transactions have taken place between 1 January 2023 and the date of request (25 July 2023), the APA can be initiated from 1 January 2023. However, if the request is submitted on 22 March 2024, the accounting year 2023 cannot be the sub - ject any further of the prior agreement, because the request must be submitted no later than the last day of that accounting year (in this case 31 December 2023). However, if relevant facts and circumstances are identical during previous tax years, the person may ask for a roll-back, allow - ing for applying the outcome of the bilateral APA for the previous years. The Belgian competent authority authorises a roll-back, but only if the applicable time limits (such as assessment peri - ods) still permit it. 8. Penalties and Documentation 8.1 Transfer Pricing Penalties and Defences Other than penalties for non-compliance with transfer pricing documentation filing obligations, Belgium does not impose penalties specifically applicable in the transfer pricing context. The general penalties applicable in cases of cor - porate income tax adjustments also apply in a transfer pricing context. Please see 8.2 Transfer Pricing Documentation regarding the obligation to file certain transfer pricing documentation. An administrative fine may be imposed on companies in cases of non-compliance. This administrative fine rang - es between EUR1,250 and EUR25,000 and may be imposed from the second infringement. If the BTA can prove bad faith on the part of the tax - payer, a fine of EUR12,500 can be imposed from the first infringement.
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