Transfer Pricing guide: Belgium
Read below for more detailed information on transfer pricing regulations, document requirements, and other considerations for Belgium, as well as recent industry hot topics and key developments in the country's business landscape.
Page updated 1st July 2026
Transfer Pricing regulations
Is the jurisdiction part of OECD/G20 Inclusive Framework on BEPS?
Yes
Relevant Transfer Pricing regulation
Belgian Income Tax Code 1992, in particular Article 185 §2 - explicit reference to the arm's length principle; Articles 26, 54, 79 and 206/3 - implicit reference to the arm's length principle and the use of the term "abnormal or benevolent advantages; Articles 321/1 to 321/7 concerning the transfer pricing forms that need to be filed in Belgium (as part of the BEPS 13 framework). In addition, Circulars 2019/C/14 on administrative fines, 2020/C/35 on general transfer pricing guidance, 2020/C/88 FAQ on BEPS and Circular 2026/C/45 on Pillar One Amount B.
Is this regulation aligned with the OECD Guidelines
Yes. Belgium applies the arm's-length principle and generally follows the OECD Transfer Pricing Guidelines. However, the Belgian TP Circular (2020/C/35) also expressed specific viewpoints of the Belgian Tax Authorities.
Transfer Pricing documentation requirements
Documentation Threshold for Preparation of Local File/ TP Documentation
The Local File requirements have been implemented in Belgium through the filing of a Local File form - 275LF - which is required for each Belgian group entity or Belgian permanent establishment of a multinational group exceededing at least one of the following criteria based on its statutory accounts for the preceding financial year:
- A total of EUR 50 million in operating income and financial income (excluding non-recurring income);
- A balance-sheet total of EUR 1 billion;
- An average annual workforce of 100 FTE.
Documentation Threshold for Preparation of Master File
The Master File requirements have been implemented in Belgium through the filing of a Master File form - 275MF - which is required for each Belgian group entity or Belgian permanent establishment of a multinational group exceededing at least one of the following criteria based on its statutory accounts for the preceding financial year:
- A total of EUR 50 million in operating income and financial income (excluding non-recurring income);
- A balance-sheet total of EUR 1 billion;
- An average annual workforce of 100 FTE.
Documentation Threshold for Preparation of Country by Country Report
The CbCR needs to be filed by multinational groups that have achieved consolidated group revenues of at least EUR 750 million in the preceding reporting period.
Submission of Local File, Master File, and CbC Report Required? If so, when?
Form 275LF is filed at the same time as the Belgian corporate income tax return.
Form 275MF is filed within 12 months of the last day of the MNE reporting period.
Form 275CBC is filed within 12 months of the last day of the MNE reporting period.
Form 275 CBC NOT is due by the last day of the MNE reporting period - this notification should no longer be made annually, but only when (i) it is an initial notification, (ii) a change occurs or (iii) the group is no longer subject to the CbCR requirement.
If No Submission Required, any Other Deadline?
While the only legal requirement is the filing of the abovementioned forms (275LF / 275MF / 275CBC / 275CBC NOT), under a transfer pricing audit/upon request of the tax authorities, a company will need to submit the Local File report / transfer pricing documentation within 30 days upon request.
Other Documentation Requirements
N/A
Does TP documentation / Local file Need to be Prepared Contemporaneously with Tax Return Filing (i.e., before filing the return)?
Yes
Transfer Pricing Specific Returns
Preparation of TP Return Required?
Yes. Belgium has TP-specific forms as already referred to above (275LF, 275MF, 275CBC and 275CBC NOT).
Deadline for TP Return Filing
Form 275LF is filed at the same time as the Belgian corporate income tax return.
Form 275MF is filed within 12 months of the last day of the MNE reporting period.
Form 275CBC is filed within 12 months of the last day of the MNE reporting period.
Form 275 CBC NOT is due by the last day of the MNE reporting period - this notification should no longer be made annually, but only when (i) it is an initial notification, (ii) a change occurs or (iii) the group is no longer subject to the CbCR requirement.
Key information to be included in the TP Return
Form 275LF: includes qualitative information (such as management structure, ownership structure, reporting lines, business activities, competitors, etc.) as well as quantitative information on the intercompany transactions of the Belgian entity (incl. selection of the TP method and availability of agreements and studies).
Form 275MF: includes information on the organisational structure of the group, description of the MNE's business (incl. key products and markets, services, restructurings, etc.), its intangibles, intercompany financial activities and the MNE's financial and tax positions.
Form 275CBC: includes jurisdictional tax and financial data, as well as information on all constituent entities (incl. address and main business activities).
Form 275CBC NOT: includes the identification of the ultimate parent entity of the MNE and the reporting entity (insofar different).
Benchmarking - Local Tax Authority Preferences
Local vs Regional Comparables Set
Pan-European studies are generally accepted where sufficiently reliable local comparables are unavailable, provided that the markets are comparable and the geographic selection is substantiated.
Single-Year vs Multi-Year Analysis
The Belgian Tax Administration prefers at least three years of comparable-company data to be applied in the benchmarking study (historical data), whereas the tested party is generally evaluated on a single-year basis for the year and transaction under review.
Public vs Private Comparables
Reliable internal comparables should be considered. External comparables from public sources and commercial databases are accepted, but the process must be transparent, systematic and verifiable and must include qualitative screening.
Interquartile Range or Full Range
The Belgian Tax Administration has a preference for the interquartile range.
Under exceptional circumstances, and provided that the comparables are highly comparable to one another and of equally high quality, any point within the full range may serve as a benchmark.
If the result of the transaction under review falls outside the range (either the full range in the case of very good comparables, or the interquartile range in other cases) and the taxpayer cannot provide a reasonable explanation for this deviation, an adjustment is required. This adjustment must be made to a point within the range (either the full range in the case of very good comparables, or the interquartile range in other cases) that best reflects the facts and circumstances of the transaction under review. If such a specific point within the range cannot be identified, the tax authorities prefer to adjust to the median.
Transaction-Based or Aggregate Approach, or Both
Transaction-by-transaction is the starting point, but transactions that are closely linked or highly similar transactions may be aggregated where economically appropriate and the combined arm's-length outcome is substantiated.
How Often are Benchmarking Sets Renewed (financial update versus full scope BMS preparation)
A full refresh of the original benchmarking study is preferably performed every three years, or earlier where the facts and circumstances require it, with an update of the financial data for the years in between (on an annual basis).
Amount B Pricing Mechanism
Belgium published its Circular (2026/C/45) to adopt the OECD Pillar One Amount B guidance as part of its local rules to reduce compliance burden for baseline marketing and distribution entities. In terms of scope and TP methodology, Belgium generally mirrors the OECD guidance, referencing to TNMM as the designated method and the use of the pricing matrix. The Circular indicates that Belgium respects the result obtained within the in-scope transactions for the "covered jurisdictions" provided that the simplified approach is correctly applied in the foreign jurisdiction and a double tax treaty exists with Belgium.
Belgium published its Circular (2026/C/45) to adopt the OECD Pillar One Amount B guidance as part of its local rules to reduce compliance burden for baseline marketing and distribution entities. In terms of scope and TP methodology, Belgium generally mirrors the OECD guidance, referencing to TNMM as the designated method and the use of the pricing matrix. The Circular indicates that Belgium respects the result obtained within the in-scope transactions for the "covered jurisdictions" provided that the simplified approach is correctly applied in the foreign jurisdiction and a double tax treaty exists with Belgium.
The addendum applies to transactions starting on or after January 1, 2025.
TP Penalties
In Case of Delayed Submission of Documentation
In case of non-filing, incorrect or incomplete filing of the mandatory Belgian transfer pricing forms, specific administratives fines may be levied. Such fines will be imposed as of the second infringement and may range from EUR 1.250 to EUR 25.000.
In case of Income Adjustments in Course of a Tax audit
A TP adjustment may increase Belgian taxable income under the arm's-length rules. Penalties / fines are separate from the tax adjustment.
Where an adjustment causes double taxation, treaty MAP, the EU Arbitration Convention or the EU tax-dispute-resolution framework may be available.
Other Considerations
APA & MAP Availability
A taxpayer can request a unilateral, bilateral or multilateral APA in Belgium to obtain tax certainty. Unilateral requests are managed via the Office for Advance Decisions (Belgian Ruling Commission), whereas bilateral and multilateral APAs involve the Belgian Competent Authorities. Furthermore, MAP is available under Belgium's tax treaties, and the EU Arbitration Convention and Belgian law implementing the EU Tax Dispute Resolution Directive may also apply.
Applicability of Safe Harbour Rules
Belgium has no general safe harbour for ordinary related-party transactions. Belgium accepts the OECD simplified approach for qualifying low value-adding intragroup services, whereby a 5% mark-up on the relevant cost base may be applied without the need to have a separate benchmark.
Critical Transfer Pricing Issues Prevailing in the Jurisdiction, if any
- Recurring losses or low returns in routine entities.
- Business restructurings and transfers of profit potential.
- Intangibles and DEMPE/HTVI.
- Intragroup-service benefit tests and cost bases.
- IC financing transactions (incl. loans, guarantees and cash pools)
- Profit attribution to PEs
- Data inconsistencies among the Belgian TP forms, accounts, contracts and actual conduct.
Criteria/ Guidelines for Transfer Pricing Audit/ Assessments by Tax Authority
TP Documentation should reconcile to the statutory accounts and reflect actual conduct of the parties involved in the transaction.
Relevant Regulations and Rulings with Respect to Thin Capitalization or Debt Capacity in the Jurisdiction
Circular 2020/C/35 requires analysis of whether the lender has realistic alternatives, whether an independent lender would lend, whether the borrower could and would borrow the amount, and whether the contractual terms and interest rate are arm's length. The borrower's rating, implicit support, amount, term and currency are relevant to determine the appropriate interest rate. Separate Belgian interest-deduction limitations must be reviewed independently under the applicable tax provisions.
Meet the experts
Wherever your business operates, HLB's specialists combine local expertise with global collaboration to deliver practical advice, helping organisations navigate challenges, seize opportunities and achieve their ambitions.
A new model for form 275 LF was published in the Belgian Official Gazette on 19 December 2025 and applies to financial years beginning on or after 1 January 2025. FPS Finance confirmed that documents relating to section B10 (transfer pricing methodology or principles, framework or model agreements and transfer pricing studies) no longer have to be attached to the form; only their availability needs to be reported. On 3 July 2026, FPS Finance released a draft preview of the corresponding new XSD schema.
-
On 19 March 2026, the Belgian tax administration issued Circular 2026/C/45, an addendum to Circular 2020/C/35 on the OECD Pillar One Amount B simplified and streamlined approach. The addendum applies to transactions from 1 January 2025 and covers qualifying cross-border baseline wholesale distribution transactions, including buy-sell distributors, sales agents and commissionaires, as well as dealings with permanent establishments. It does not apply to in-scope intragroup transactions carried out solely in Belgium, but will apply to in-scope transactions with "covered jurisdictions" provided that the simplified approach is correctly applied in the foreign jurisdiction and a double tax treaty exists with Belgium.
-
Belgium introduced revised forms 275 LF and 275 MF for qualifying taxpayers for financial years beginning on or after 1 January 2025. The revised Local File requires more detailed business-unit and country-by-country transaction reporting. The revised Master File requests a more detailed value-chain and functional analysis with focus on profit distribution and a comparison with the TP results, more details on DEMPE and hard-to-value intangibles as well as additional information on the Group’s general TP policy for financing arrangements.
-
The detailed part of form 275 LF (B-tables) only need to be completed insofar the company is involved in cross-border related-party transactions exceeding EUR 1 million. The explanatory note permits an optional EUR 25,000 transaction-level materiality threshold for tables B3 to B6, provided that these transactions do not relate to the core business of the entity.
-
Form 275 CBC NOT is not an annual repeat filing for reference periods ending on 31 December 2024 or later. It is only required to be filed when (i) it is an initial notification, (ii) a change occurs or (iii) the group is no longer subject to the CbCR requirement. FPS Finance published additional 2026 guidance on termination scenarios, validation status and technical corrections.
-
Belgium implemented public country-by-country reporting through the Law of 8 January 2024, transposing the EU Directive of 2021/2101. Subject to the detailed entity and branch scope rules, the regime applies to financial years beginning on or after 22 June 2024 and generally targets groups or stand-alone undertakings with net turnover exceeding EUR 750 million in each of two consecutive financial years. First Belgian filings arise in 2026. EU entities file in iXBRL; qualifying non-EU groups may use XBRL, and PDF filing is not accepted.
-
The Belgian forms require overlapping group, entity, transaction, financial and functional information, so the corporate income tax return, forms 275 LF and 275 MF, the CbC report and notification, public CbCR, statutory accounts, intercompany agreements, benchmarking and actual conduct should be reconciled and should describe the same facts.
Recommended immediate actions
-
Reconfirm the Belgian documentation and CbCR thresholds at the start of each compliance cycle using the preceding-year statutory and consolidated figures.
-
Map the data fields in the Belgian forms to the general ledger, management reporting, legal-entity records and the group Master File before year-end.
-
Validate functions, assets, risks, DEMPE contributions and decision-making through functional interviews and contemporaneous evidence, not only through contracts.
-
Perform year-end transfer pricing monitoring and any defensible true-up before filing the Belgian tax return and Local File.
-
Screen cross-border wholesale distribution, sales-agency and commissionaire arrangements for Amount B and document the scope tests, exclusions, pricing-matrix inputs, covered-jurisdiction status and treaty position.
Belgian transfer pricing risk assessment is supported by the detailed information reported in forms 275 LF, 275 MF, 275 CBC and 275 CBC NOT, together with the tax return and accounting information. Those data allow the administration to identify inconsistencies and to frame information requests.
-
Recurring losses or persistently low profitability in a Belgian entity, particularly where the group is profitable or the entity is characterised as limited-risk, are a prominent risk indicator.
-
Business restructurings, conversions of full-fledged entities into limited-risk models, transfers of profit potential and the allocation of exceptional restructuring costs require an arm's-length analysis.
-
Intangibles are examined through the DEMPE framework. Legal ownership alone does not determine the return where relevant functions, decision-making, risk control or funding capacity are located elsewhere.
-
Intragroup services are closely analysed for the existence of a benefit, shareholder activities, duplication, allocation keys, the composition of the cost base and the appropriateness of the mark-up.
-
Intragroup loans, guarantees and cash-pooling arrangements require analysis of realistic alternatives, debt capacity, credit rating, pricing, implicit support and the allocation of synergy benefits.
-
The administration starts from written contracts but gives priority to actual conduct where the two are inconsistent. The Local File, Master File, CbC data, statutory accounts, invoices and calculations should therefore be mutually consistent.
Administrative reporting penalties can reach EUR 25,000 per infringement. A first non-intentional infringement may result in no fine, but the scale increases for repeated infringements. Where bad faith or an intention to evade tax is present, the first fine is EUR 12,500 and subsequent infringements may be fined at EUR 25,000. Any arm's-length adjustment is separate from these reporting fines and may affect taxable income under the general corporate tax rules.
.
Advance Pricing Agreements
-
A taxpayer can seek a Belgian advance ruling on the tax consequences of a transaction or situation that has not yet produced tax effects. Circular 2020/C/35 refers to the Belgian APA framework and the related competent-authority procedures.
-
An APA may be particularly useful for material or recurring transactions, complex financial arrangements, intangibles, restructurings, cost contribution arrangements and permanent-establishment profit attribution.
-
A prefiling request can be submitted to the Belgian Ruling Service. Current Ruling Service guidance states that transfer pricing prefilings or direct applications relating to a calendar year should reach the service by 30 November of that year.
Mutual Agreement Procedure
-
MAP is available under Belgium's double tax treaties where an adjustment causes, or is likely to cause, taxation not in accordance with the treaty.
-
Depending on the case, the EU Arbitration Convention and the Belgian legislation implementing the EU Tax Dispute Resolution Directive may also provide a dispute-resolution route.
-
Taxpayers should monitor the applicable treaty and domestic filing deadlines and preserve the information needed to demonstrate the underlying transaction, the foreign adjustment and the resulting double taxation.
-
For Amount B cases, Belgium may consider a corresponding adjustment in MAP or arbitration on a case-by-case basis where the counterparty jurisdiction is a covered jurisdiction, applies the approach consistently with the OECD framework and has a double tax treaty with Belgium. If one jurisdiction has not chosen to apply Amount B, the competent authorities must rely on the ordinary OECD Transfer Pricing Guidelines and Belgium will in particular apply Circular 2020/C/35.
Alignment with OECD Guidelines
-
The Belgian tax administration expressly endorses the arm's-length principle and the OECD Transfer Pricing Guidelines. Circular 2020/C/35 states that later changes to the OECD Guidelines will generally be followed by Belgium.
-
Circular 2026/C/45 accepts later changes to the Amount B report or the corresponding annex to the OECD Transfer Pricing Guidelines, but limits the addendum to Amount B and does not revise the general principles of Circular 2020/C/35.
-
The controlled transaction must first be accurately delineated by reference to contractual terms, functions, assets, risks, product or service characteristics, economic circumstances and business strategies. Actual conduct prevails where it is inconsistent with the written contract.
-
The most appropriate method should be selected for the accurately delineated transaction. Where methods are equally reliable, a traditional transaction method is preferred over a transactional profit method, and CUP is preferred where it is as reliable as another method.
-
The Belgian Master File form goes beyond a generic group description by requesting a more detailed value-chain and functional analysis with focus on profit distribution and a comparison with the TP results, more details on DEMPE and hard-to-value intangibles as well as additional information on the Group’s general TP policy for financing arrangements.
Benchmarking Analyses Nuances or Preferences
-
Reliable internal comparables should be considered. External comparables may be drawn from public information and commercial databases, but the search process must be transparent, systematic and verifiable and should include a robust qualitative review.
-
Belgian comparables are not mandatory. Where sufficiently reliable local comparables are unavailable, the administration generally accepts Pan-European studies provided that the markets are sufficiently comparable and the geographic selection is explained.
-
The administration prefers at least three years of comparable-company data, while the tested party's result is generally evaluated for the single year and transaction under review.
-
The interquartile range is preferred. If the tested result is outside the relevant range and no fact-specific point can be identified, the administration prefers an adjustment to the median.
-
A financial update should be performed annually. A full refresh of the original study is preferably performed every three years, or earlier where the facts and circumstances require it.
-
For limited-risk tested parties, the administration does not accept comparables with two or more loss-making years in the range. Start-up companies established less than four years ago are generally excluded unless the tested party is itself a start-up.
-
The transaction-by-transaction approach is the starting point. Closely linked or highly similar transactions may be aggregated where that approach is economically appropriate and the taxpayer can substantiate the combined arm's-length outcome.
-
Comparability adjustments should be made only where they improve reliability. Working-capital adjustments are common, but adjustments should not be used to turn fundamentally different companies into comparables.
-
For qualifying Amount B transactions, TNMM is the designated method, although CUP remains acceptable where it is more appropriate. The tested party's return on sales is determined from the OECD pricing matrix by sector category and three-year weighted-average operating-asset and operating-expense intensity, with plus or minus 0.5 percentage-point flexibility and possible operating-expense cross-check and data-availability adjustments.
Thin Capitalisation Considerations for Intercompany Loans
-
Circular 2020/C/35 requires an arm's-length analysis of whether the lender has realistic alternatives, whether the borrower could and would borrow the amount, whether the contractual terms are market-conform and what interest rate is arm's length.
-
Creditworthiness must be analysed at borrower level, taking account of implicit group support. Relevant pricing factors include the borrower's rating, the amount, term, currency and purpose of the loan. A reliable internal or external CUP should be considered where available.
-
For an explicit guarantee that creates a measurable borrowing benefit, the Belgian administration expresses a preference for the yield approach. No fee should be charged merely for implicit support arising from group membership.
-
Cash-pool synergies should benefit the participants. A cash-pool leader performing only routine coordination should receive an arm's-length service return. A stable debit or credit balance maintained for 12 months may need to be treated and priced as a loan rather than as a short-term cash-pool position.
-
The transfer pricing analysis in Circular 2020/C/35 addresses the arm's-length character of the financing; any separate Belgian interest-deduction limitations must be reviewed independently under the applicable tax provisions.
