BDO Tax & Legal Belgium’s Post

𝗣𝗶𝗹𝗹𝗮𝗿 𝗧𝘄𝗼 𝘂𝗽𝗱𝗮𝘁𝗲 𝗼𝗻 𝗕𝗲𝗹𝗴𝗶𝗮𝗻 𝗿𝗲𝗴𝗶𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻 𝗽𝗿𝗼𝗰𝗲𝘀𝘀: 𝗮𝗰𝘁 𝗻𝗼𝘄 The Belgian tax authorities have issued further details on the recently introduced Pillar Two registration process. At the core is the Pillar Two Notification Form. Completion of this Form requires the collection of a substantial amount of data, a thorough understanding of the group’s (Belgian) Pillar Two position and, last but not least, access to the MyMinfin portal. On top of the administration, a very tight deadline is imposed – 30 days after the start of the First Pillar Two reporting period, extended to 45 days as of the publication date of the form for the current (or soon to start) reporting period. In-scope taxpayers are therefore urged to take immediate action! Read more about this in our recent article: https://okt.to/50BzUq Have questions or need support? Do not hesitate to contact one of the following experts, Olivier Michiels, Paul Ampe, Jonathan Collard, Jeroen Sevens or your regular BDO contact. #PillarTwo #MyMinfin

𝗣𝗶𝗹𝗹𝗮𝗿 𝗧𝘄𝗼 𝘂𝗽𝗱𝗮𝘁𝗲 𝗼𝗻 𝗕𝗲𝗹𝗴𝗶𝗮𝗻 𝗿𝗲𝗴𝗶𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻 𝗽𝗿𝗼𝗰𝗲𝘀𝘀: 𝗮𝗰𝘁 𝗻𝗼𝘄 The Belgian tax authorities have issued further details on the recently introduced Pillar Two registration process. At the core is the Pillar Two Notification Form. Completion of this Form requires the collection of a substantial amount of data, a thorough understanding of the group’s (Belgian) Pillar Two position and, last but not least, access to the MyMinfin portal. On top of the administration, a very tight deadline is imposed – 30 days after the start of the First Pillar Two reporting period, extended to 45 days as of the publication date of the form for the current (or soon to start) reporting period. In-scope taxpayers are therefore urged to take immediate action! Read more about this in our recent article: https://okt.to/CbItz5 Have questions or need support? Do not hesitate to contact one of the following experts, Olivier Michiels, Paul Ampe, Jonathan Collard, Jeroen Sevens or your regular BDO contact. #PillarTwo #MyMinfin

Court of Justice of the European Union has decided in Entain Services (Bulgaria) (C-287/23) that the Bulgarian legislation allowing for a withholding tax exemption for dividends distributed by Bulgarian resident companies to parent companies resident in Bulgaria or in other EU Member States, whereas dividends distributed by resident companies to parent companies established in Gibraltar are not exempt from such tax, constitutes an unjustifiable restriction to the freedom of establishment. As Gibraltar was an European territory for whose external relations the United Kingdom of Great Britain and Northern Ireland, an EU Member State at that time, was responsible within the meaning of the TFEU, the provisions of the TFEU applied to Gibraltar and parent companies resident in Gibraltar could invoke the freedom of establishment or the free movement of capital as provided by the TFEU because a more burdensome tax treatment was applicable by Bulgaria to dividends paid to parent companies resident in Gibraltar. Summary of C-287/23 is available in IBFD Direct Tax Summaries Collection (subscribers only) https://lnkd.in/dErfuT5M Thank you Katerina Ilieva for writing the summary! #CourtofJusticeofEuropeanUnion #EuropeanTaxLaw #exemptionofdividends #Taxlaw #EuropeanTaxLaw #taxation #ParentSubsidiaryDirective

Nasscom is advocating for a lighter taxation environment in the 2024 Union Budget to boost the tech industry, including Global Capability Centers (GCCs). They propose raising the eligibility threshold for safe harbour provisions from Rs 200 crore to Rs 2,000 crore and aligning safe harbour margin rates with global standards to enhance tax competitiveness and attract more investment in the IT sector. nasscom For more details, you can read the full article [here](https://lnkd.in/dPE79SQ6).

The latest Talking Points article is out now. In this new piece, HARSHITA JAIN discusses the latest developments regarding the India-Mauritius tax treaty, including the coming changes regarding the principal purpose test to be added to the treaty. Read the full article on the Tax Research Platform (TRP) here. Subscription required: https://lnkd.in/eGzhVhh6 #TalkingPoints #IndiaMauritiusTreaty #internationaltax #internationaltaxation

Multinationals have long benefited from the India-Mauritius tax treaty, but changes are coming with a new principal purpose test which will soon be added to the treaty. This will affect not only future tax planning, but possibly also existing deals. In this new Talking Points article, HARSHITA JAIN explains the recent history of the India-Mauritius treaty, previews the coming change and explains what companies should know in order to adapt. Read the full article on the Tax Research Platform (TRP) now! Subscription required: https://lnkd.in/eGzhVhh6 #TalkingPoints #IndiaMauritiusTreaty #TaxPlanning #IBFD Stuart Gibson

Curacao enhances its appeal as a prime location for investment funds. The attached alert details several significant amendments to Curacao's tax laws that enhance its attractiveness as a location for investment funds. Firstly, partnerships, including limited partnerships, are now considered transparant entities and are not subject to Curacao profits tax. However, partners of a limited partnership (known locally as a "commanditaire vennootschap" or CV) may opt for the entity to be taxable under Curacao's profits tax regime. Additionally, the substance requirements have been abolished for investment vehicles that are registered with the Central Bank of Curacao and St Martin (CBCS). In a separate mandate, Curacao has established a register for Ultimate Beneficial Owners. It should be noted however, that this UBO register will not be accessible to the general public.

The Netherlands presented its annual package of tax measures, with several key updates, including: - reducing the individual income tax rate for the first bracket to 35.82%; - introducing a new, middle bracket for incomes between EUR 38,441 and EUR 76,817; - making the 30% ruling regime for expatriates more attractive; - implementing the GAAR under the Anti-Tax Avoidance Directive; - relaxing the EBITA-based interest deduction limitation; - increasing the VAT rate on lodgings (hotels) and certain cultural goods and services; and - reducing the energy tax rates on natural gas. For full details of the presented tax measures ⤵ (subscription required) #Prinsjesdag #budgetday #budgetbill #NL #cit #pit #vat https://lnkd.in/eSnfbqjf

Withum international tax experts Julia Kudinova and Chaya Siegfried, CPA, MST discuss the fate of the Foreign-Derived Intangible Income (FDII). Some lawmakers call for expansion; some, on the contrary, want it eliminated. Under IRC Code 250, domestic corporations may deduct 37.5%. However, without any further legislation, the deduction is set to drop to 21.875% in 2026. How will your company be affected? #Withum #WithumTax

OECD - OCDE - Capacity-Building Strategy for the Widespread and Effective Implementation of the Crypto-Asset Reporting Framework (CARF) In July 2023, the OECD, working with G20 countries, completed and published the Crypto-Asset Reporting Framework (CARF), which provides for the automatic exchange of tax relevant-information on CryptoAssets. This new Standard on Automatic Exchange of Information, the CARF, aims at addressing the new risks posed to tax transparency by the rapid and significant development of the Crypto-Asset sector, which could counter the progress made worldwide through the implementation of the Common Reporting Standard (CRS) for Automatic Exchange of Financial Account Information. Tax authorities face novel challenges in this area as they have limited visibility over tax-relevant activities of their taxpayers that are carried out within the Crypto-Assets sector, with increased difficulty to ensure tax compliance. Being a critical tool to ensure transparency over Crypto-Assets transactions, the G20 Leaders invited in September 2023 the Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum) to support the rapid and widespread implementation of the CARF. Since then, the Global Forum has developed its commitment process to ensure an effective implementation of the CARF based on a level playing field, identifying 52 jurisdictions immediately relevant to the CARF so far which were asked to commit to implementing it in time to commence exchanges in 2027, or 2028 where they face particular challenges with the 2027 timeline.