Linkedin
Facebook
Email
more
Belgian tax administration released a draft QDMTT (also referred to as QDMTT return or QDMTT form), on 10 April 2025, to be submitted by Belgian entities subject to the Pillar 2 legislation in Belgium. This draft is provided for information but will be finalized via a publication in the Belgian Official Gazette. Further administrative guidance on how to complete and file the return is forthcoming – the authorities have indicated that detailed instructions will be published, along with the final XML schema, ahead of the first deadline.
BACKGROUND
Belgium’s Pillar 2 legislation (Law of 19 December 2023) applies a 15% minimum effective tax to multinational enterprise (MNE) groups and large domestic groups with consolidated annual revenue over €750 million (in at least two of the four preceding years).
Scope of the QDMTT and who must file
Any Belgian constituent entities of such in-scope groups are required to file a QDMTT return each year under the new rules. In practice, if an MNE group has multiple Belgian entities, one Belgian entity can be designated to file the QDMTT return on behalf of all Belgian group entities. All Belgian entities remain jointly liable for the QDMTT. The group may also nominate which Belgian entity will pay any top-up tax due; if none is designated, the entity with the largest Pillar 2 taxable income will be the default payer.
Filing process and submission requirements
Belgium’s QDMTT return must be filed electronically through the tax administration’s online platform (e.g. MyMinfin). Key aspects of the filing process include:
- Registration: Before filing, an in-scope group must register with Belgian authorities for Pillar 2. This involves a notification form (via MyMinfin) to obtain a unique group registration number in the Crossroads Bank for Enterprises (CBE). Only a registered MNE group can submit a QDMTT return in Belgium.
- Digital Platform & Format: The return must be submitted digitally. The Belgian tax authorities have announced that they will provide an XSD schema (XML format) and XML generator tool for the QDMTT return data, enabling standardized electronic filing. Paper filing is not expected.
- Language: The official QDMTT form is available in Belgium’s official languages (Dutch and French).
- Form and Submission: The return form (draft available as of April 2025) must be completed with all required data (see next section) and submitted via the portal. The form includes a section for a contact person’s details and must be signed by an individual legally authorized to represent the filing entity.
Contents of the QDMTT Return
The QDMTT return is comprehensive. It gathers both identification details and the financial data needed to calculate any top-up tax due. According to the draft form and guidance, key sections of the Belgian QDMTT return include:
- Identification Details: Information identifying the designated Belgian filing entity and the MNE or domestic group (name, fiscal ID, etc.), as well as a designated contact person’s details.
- Group Structure: Details on the group’s Ultimate Parent Entity (UPE) and all Belgian constituent entities in the group (including any joint ventures or affiliates and any excluded entities such as those outside scope). This section essentially outlines the Belgian “subgroup” within the MNE.
- Safe Harbour and Exclusions: Data to determine if any transitional safe harbours or de minimis exclusions apply for the Belgian entities. For example, the form captures metrics needed for the OECD’s Country-by-Country Report (CbCR) safe harbour test for the transition years. Importantly, even if a safe harbour applies (meaning the Pillar 2 effective tax rate tests are met via simplified data), Belgium still requires a QDMTT return to be filed. The tax authority is expected to clarify how to fill out sections in cases where a Belgian subgroup falls under a safe harbour.
- Pillar 2 Elections: Disclosure of any elections made under the Pillar 2 framework that affect the calculations for the Belgian entities. For instance, groups must report if they elected certain treatments (e.g. stock-based compensation expense election, domestic blending elections, etc.) that are allowed by the OECD rules and reflected in the QDMTT calculation.
- Financial Data for QDMTT Calculation: The core financial inputs needed to compute the Belgian top-up tax, reported per Belgian subgroup. This includes figures such as:
- Financial Accounting Net Income or Loss (FANIL) for the Belgian entities.
- Net GloBE Income or Loss (profit/loss as determined under Pillar 2 rules after adjustments).
- Tax Expense Accrued in the financial accounts (current tax and deferred tax for the Belgian entities).
- Adjusted Covered Taxes, i.e. the taxes attributable to that income as adjusted by Pillar 2 rules (this reflects the “covered taxes” paid in Belgium, adjusted for any timing or preferential items).
- Any taxes to be reallocated under QDMTT rules (for example, if certain taxes are allocated from other jurisdictions under specific rules).
- Prepayments: A report of any Pillar 2 advance payments made. Belgium has instituted an optional prepayment system for Pillar 2 taxes, similar to its corporate tax prepayments. This section lists any quarterly prepayments toward QDMTT made for the year, as well as any excess regular corporate tax prepayments that the group elects to carry over to Pillar 2. Excess CIT prepayments can potentially be used to offset Pillar 2 liability.
- QDMTT Calculation and Payable Amount: Finally, the return includes a calculation of the Belgian top-up tax due for the year (per Belgian subgroup) after applying the 15% minimum tax formula. This calculation will take into account the above financial data, determine the top-up percentage (if the effective tax rate in Belgium is below 15%), and then compute the QDMTT amount. It then credits any prepayments made against the liability to arrive at the net amount payable. Notably, the form expects the final tax due to be reported in EUR currency.
The draft return also includes fields for a declaration signature (to be signed by an authorized representative) and confirmation of the contact person. These ensure accountability and communication for the filing.
Filing Deadline and Tax Period Covered
The first Belgian QDMTT return is due by 30 November 2025 for in-scope groups. This deadline applies to groups on a calendar-year basis, covering the financial year 2024 (the first year Pillar 2 is in effect). In general, the law mandates that the QDMTT return be filed by the last day of the 11th month following the end of the reporting year. For example: if a group’s fiscal year ends on 31 December 2024, the QDMTT return for that year must be filed by 30 November 2025. If a group had a non-calendar fiscal year (e.g. ending 30 June 2025), its QDMTT return would be due 11 months after that date (e.g. 31 May 2026).
Penalties and Consequences for Late Filing or Non-Compliance
Belgian authorities have put in place a penalty regime to enforce timely and accurate compliance with the QDMTT obligations. The consequences of late filing, non-filing, or underpayment can be severe:
- Administrative Fines: Failure to file the QDMTT return (or filing it late/incompletely) can trigger administrative penalties ranging from €2,500 up to €250,000. The exact amount may depend on the seriousness and duration of the infraction.
- Tax Surcharge for Late Payment: If a group does not make sufficient advance payments toward its QDMTT, the law provides for a tax increase (surcharge) on the outstanding QDMTT amount. The surcharge is 9% of the QDMTT due for the financial year 2024, analogous to the interest penalty for not prepaying regular corporate tax. Excess regular corporate tax prepayments can also yield credits (with credit rates of 12%, 10%, 8%, 6% depending on which quarter of the year they were paid). These mechanisms encourage groups to estimate and prepay their Pillar 2 taxes to avoid a last-minute surcharge.
- Extended Audit Period: A QDMTT return is considered a “complex return” by the tax administration. Consequently, the statute of limitations for the tax authorities to investigate and adjust a QDMTT (or IIR/UTPR) return is currently extended to 10 years. However, governmental plans exist to limit this term to 4 years. This means that Belgian tax inspectors could reopen and scrutinize a QDMTT filing years later if discrepancies or new information come to light. Companies should therefore keep detailed records of their calculations and data in case of future audits.
If you would like to receive additional information on this matter or require tax assistance, the RSM Belgium Tax team is at your disposal [email protected]).
