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Belgium Consulting on Draft Circular on the 2017 OECD Transfer Pricing Guidelines — Orbitax Tax News & Alerts

Belgium's Federal Public Service Finance launched a public consultation on 9 November 2018 on a draft transfer pricing circular. The circular provides an overview of the OECD 2017 Transfer Pricing Guidelines (2017 TPG), including the Belgian tax administration position on certain areas. The circular notes that the Belgian tax administration will follow the principles of the 2017 TPG and that any subsequent amendments to the 2017 TPG will be adopted. The circular also notes that it is important to recognize that transfer pricing between related parties is not an exact science and both the tax administration and the taxpayer will have to show flexibility and cooperation to achieve an arm's length price. In this respect, the tax administration cannot impose unreasonable requirements with respect to the basis and evidence of a transfer price. On the other hand, taxpayers are required to provide the necessary documentation to justify an applied transfer price.

The deadline for comments on the circular is 12 December 2018.