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Belgian transfer pricing practice is clearly evolving toward more substantive and data-driven audits. The tax authorities are investing in additional specialized transfer pricing expertise, making audits not only more frequent but also more thorough. At the same time, the administration is increasingly using data mining to identify risks, cross-checking information from sources such as CbC reporting, DAC6 disclosures, and transfer pricing documentation.
In this Tax Insight, we discuss the key transfer pricing developments that companies can expect in 2026.
1. STRENGTHENING OF THE BELGIAN TRANSFER PRICING UNIT
The Belgian tax authorities are actively investing in additional specialised transfer pricing experts. This is translating into a clearly visible increase in audit capacity.
In practice, this results in, among other things:
- more parallel transfer pricing audits
- more substantive and extensive questionnaires
- deeper economic analysis of benchmark studies
- increased international cooperation between tax administrations
The era of mere formal compliance is over. Transfer pricing files are increasingly being reassessed on a substantive basis, with the tax authorities recalculating and recharacterizing positions where necessary, placing the economic reality at the centre of their analysis.
2. DATA MINING AND PROACTIVE RISK IDENTIFICATION
The tax authorities are increasingly making use of an internal data mining system that combines multiple information sources to identify potential risks.
Selection criteria appear to focus, among other things, on:
- structural or sudden fluctuations in margins
- recurring losses
- Belgian permanent establishments reporting limited profits (limited-risk vs. co-entrepreneur positioning)
- deviations between CbC data and local financial figures
What is new is that the tax authorities are also proactively re-analysing historical information, sometimes across multiple assessment years.
Key data sources include:
- innovation deduction files (with a focus on IP structures and DEMPE analyses)
- DAC6 disclosures, with particular attention to hard-to-value intangibles
- local files and master files
- Country-by-Country reporting
- annual accounts and corporate income tax returns
A key risk indicator for 2026 is the presence of inconsistencies between these different sources of information.
3. AVERAGE DURATION OF TRANSFER PRICING AUDITS: 18 MONTHS
In practice, transfer pricing audits today last on average around 18 months. Typical features of such audits include:
- in-depth functional interviews with management
- extensive data requests (questionnaires of approximately 35 questions)
- reopening of multiple assessment years
- analysis of other Belgian group entities
As the tax authorities increasingly assess transfer pricing at group level, an audit at one Belgian entity may have implications for other group companies. Companies are therefore well advised to manage their transfer pricing policies in a consistent and coordinated manner at group level and to prepare for potential group-wide audits.
4. THE ORA FRAMEWORK (“OPTIONS REALISTICALLY AVAILABLE”)
An important development is the introduction of the” Options Realistically Available” (ORA) concept, which originates from German tax practice. The ORA concept is a core principle in transfer pricing that assesses whether related parties act as independent parties would, considering the options realistically available to them.
Beyond pricing, tax authorities are increasingly focusing on internal governance around transfer pricing. This includes assessing whether transfer pricing policies are applied consistently and whether contractual arrangements align with the actual activities within the group.
This approach aligns with international trends whereby tax authorities place greater emphasis on the control environment and internal decision-making processes within enterprises.
5. VAT IMPLICATIONS OF TRANSFER PRICING ADJUSTMENTS
An important point of attention is the potential VAT impact of transfer pricing adjustments. Recent case law from the Court of Justice of the European Union, including the Arcomet judgment (C-726/23) and Stellantis (C-603/24), confirms that certain transfer pricing adjustments may have VAT consequences where they are linked to a taxable supply of services between group entities. For a more detailed discussion of the Arcomet case, we refer to our previous RSM Tax Insight.
For allocations of administrative costs or management fees, it is therefore crucial to clearly demonstrate that there is a direct link between the remuneration and a specific service rendered.
6. INCREASED FOCUS ON COST ALLOCATIONS AND MANAGEMENT FEES
Cost allocations and management fees remain one of the most scrutinized topics during transfer pricing audits.
The tax authorities assess, among other things:
- whether the services received actually create value
- whether costs are not charged twice
- whether the allocation keys used are economically justified
- whether certain costs should be classified as shareholder costs
In addition, the distinction between operational services and strategic services is receiving increasing attention.
7. NEW AREAS OF FOCUS FOR TRANSFER PRICING DOCUMENTATION
Belgian transfer pricing documentation requirements are also evolving. Following the changes introduced by the Royal Decree of 7 December 2025, certain administrative requirements have been relaxed, while at the same time the tax authorities expect more substantive explanations in both the local file and the master file.
With respect to the local file, for financial years starting on or after 1 January 2025, the obligation to attach documentation to the section “Transfer pricing methodology and studies per business unit and per type of transaction (B10)” has been abolished. In line with prior practice, it is now sufficient to confirm that such documentation is available and can be provided upon request.
In contrast, the requirement remains unchanged for the section “Cost contribution agreements, advance pricing agreements, advance rulings and in-house (re)insurance (B12).”
With respect to the master file, although it is formally based on the OECD minimum standard, a purely generic or standardized OECD-style description is increasingly insufficient in practice. The Belgian tax authorities expect a master file that provides real insight into the economic reality and the group’s value chain, including:
- a detailed DEMPE analysis (Development, Enhancement, Maintenance, Protection and Exploitation) of intangible assets
- financial flows between group entities
A robust transfer pricing analysis of intra-group loans is essential to successfully withstand a tax audit, with particular attention to comparability, creditworthiness and economic reality (Court of Leuven, 6 June 2025).
For a concise overview of the original changes to the local file and the master file, we refer to our previous RSM Tax Insight.
8. RECENT DEVELOPMENTS: OECD AMOUNT B
An important international development in transfer pricing is the introduction of OECD Amount B as part of the BEPS 2.0 project. Amount B aims to introduce a simplified and standardised remuneration framework for so-called baseline marketing and distribution activities, in particular for entities operating as limited-risk distributors.
The objective is to reduce disputes between tax administrations regarding the arm’s length remuneration of these activities by providing a standardised methodology and predefined profit margin ranges.
Companies will need to assess whether the margins currently applied to their distribution activities remain aligned with the proposed ranges and whether their existing transfer pricing models require adjustment.
In addition, the application of Amount B may lead to increased transparency and comparability across jurisdictions, which could further heighten the attention of tax authorities.
HOW CAN WE SUPPORT YOU?
RSM can assist companies, among other things, with:
- the preparation and update of transfer pricing documentation (Local File and Master File)
- the evaluation of intra-group transactions, such as management fees, cost allocations and financing structures
- the performance of benchmark studies and economic analyses
- the preparation for and support during transfer pricing audits
By carrying out a timely and proactive review of your transfer pricing framework, potential tax risks can be identified, and your organization can be better prepared for possible audits.
For any questions regarding the above matters, please do not hesitate to contact the RSM Belgium Tax team (tax@rsmbelgium.be).
