Cooperation | KPMG | BE

Cooperation with the tax authorities in analyzing the transfer pricing system

Cooperation

Cooperation with the tax authorities in analyzing the transfer pricing system.

Cooperation with the tax authorities in analyzing the transfer pricing system.

Although within the framework of the most important Belgian transfer pricing provision (i.e. article 26 BITC), the burden of proof that the taxpayer has granted an abnormal or benevolent advantage lies with the Belgian tax authorities, transfer pricing documentation can be requested from the taxpayer enabling the tax authorities to assess the arm's length nature of the operations concerned. 

Absence of transfer pricing documentation or insufficient information will result in an in-depth transfer-pricing audit being carried out by the Belgian tax authorities.  

As a consequence, it is in the taxpayer's interest to have a sound transfer pricing documentation file ready at the moment the Belgian tax authorities carry out their tax investigation.  If not ready at that moment, the taxpayer should in principle submit the documentation within 30 days of request.

Connect with us

 

Request for proposal

 

Submit