Belgium’s Implementation of Standards for Transparency and Exchange of Information in Tax Matters

Summary

This article provides a summary of the peer review report on Belgium’s implementation of the standards for transparency and exchange of information in tax matters.

Section A: Obligation to Obtain and Maintain Accurate Ownership, Identity and Accounting Information

Belgium has a legal and regulatory framework in place to obtain and maintain accurate ownership, identity, and accounting information. However, the obligation for companies and partnerships to keep a register of their beneficial owners entered into force in October 2017, but its practical implementation is yet to be assessed.

The law requires companies and partnerships to keep a register of beneficial owners.
The register should contain accurate and up-to-date information on ownership and identity.
However, the effectiveness of this requirement has not been tested in practice.

Section B: Access to Information

Prior to legislative reform in July 2017, the Belgian authorities did not have effective enforcement provisions to compel the production of information. Exchange of information mechanisms should provide for effective exchange of information, and Belgium’s legal and regulatory framework is in place. However, exceptions to the requirement of prior notification or post-exchange notification were not applicable to all cases during the review period.

The legislative reform introduced new powers for the tax authorities to compel the production of information.
The law requires taxpayers to provide accurate and complete information to the tax authorities.
However, exceptions to the requirement of prior notification or post-exchange notification are still limited.

Section C: Exchange of Information Mechanisms

Belgium has a network of information exchange mechanisms that cover all relevant partners. The jurisdiction’s mechanisms for exchange of information have adequate provisions to ensure the confidentiality of information received.

Belgium has tax treaties with over 100 countries, which include provisions for exchange of information.
The law requires the tax authorities to maintain confidentiality when exchanging information.
However, exceptions to this requirement are still limited.

Section D: Protection of Confidentiality and Rights of Taxpayers and Third Parties

The Law of 1994 on disclosure of information by the administration includes an exception when documents are covered by secrecy, which has not yet been tested in practice. Belgium is recommended to monitor the application of the Law to guarantee that treaty provisions on confidentiality are respected.

The law requires the tax authorities to maintain confidentiality when disclosing information.
However, exceptions to this requirement are still limited.
Belgium is recommended to improve its procedures for protecting confidentiality.

Section E: Implementation of the Standard

The report concludes that Belgium’s exchange of information mechanisms respect the rights and safeguards of taxpayers and third parties.

The law requires the tax authorities to maintain transparency and accountability in their operations.
However, some areas still need improvement, particularly with regards to access to information and protection of confidentiality.

Conclusion

Overall, Belgium’s legal and regulatory framework for transparency and exchange of information in tax matters is largely in place. However, there are some areas that need improvement, particularly with regards to access to information and protection of confidentiality.