New Belgian Statute doubles assessment and investigation periods for taxpayers with international activities

The time limits for taxation and investigation are extended.

Under the previous regime, the ordinary time limit for income tax purposes was three years (as from 1 January of the tax year). This period remains, but there are exceptions.

A new deadline has been introduced for taxpayers who file "semi-complex" tax returns. This is especially the case for the following companies:

• when the corporate tax return concerns a company which has to file local files and country-by-country returns to satisfy transfer pricing compliance requirements
• when a return has been filed claiming reduced withholding rates on dividends, interest, royalties, by virtue of double tax treaties or EU tax directives
• when the corporate tax return claims tax credit on foreign income received
• when the corporate tax return mentions payments to entities located in tax haven jurisdictions

The period is then extended to 6 (six) years from 1 January of the tax year.

The tax authorities may also investigate the taxpayers without any particular formalities within the same period.

However, even in the case of a "semi-complex" declaration, the three-year period remains applicable for “simple” aspects such as tax disallowed expenses on company cars, restaurant and reception expenses, social benefits, etc.

In case of “complex” tax returns (e.g. in case of a “hybrid mismatch”), the deadline is even longer: 10 (ten) years.

These new rules come into force for periods relating to the tax year 2023. They will therefore already apply to companies accounts closing on 31 December 2022.

Simultaneously, the period of conservation of accounting documents is extended to ten years (instead of seven).