Country-by-Country Reporting soon to become "public"

Belgium has introduced public Country-by-Country Reporting ("public CbCR") through the law of 8 January 2024 amending the Belgian Code of Companies and Associations with respect to the disclosure of income tax information by certain undertakings and branches (Dutch/ French) ("Law"), and as further set out in the Royal Decree of 18 April 2024 (Dutch/French).

This new reporting legislation implements the EU Directive 2021/2101 as regards disclosure of income tax information by certain undertakings and branches, and aims at enhancing transparency on corporate income taxes paid by large companies, which on its turn should improve information flows to investors and the public in general.

Through this reporting obligation, in-scope companies are required to prepare, file and publicly disclose certain tax and financial information.

Scope and content

The scope of the reporting obligation includes (i) Belgian (parent) companies with a (consolidated) turnover exceeding EUR 750 million (in each of the last two financial years) and subject to multiple income tax jurisdictions and (ii) non-EU parent companies, subject to the same turnover threshold, that are economically active in Belgium through a subsidiary or a branch and subject to the Belgian tax system.

Belgian companies that are only subject to Belgian income tax fall outside the scope of this reporting obligation. Other entities that are in principle excluded from the scope are, amongst others, credit institutions and investment companies as these are already subject to specific reporting rules.

As the information to be provided in this public report is largely the same as the one provided under the non-public CbCR, the data of the latter can be used to establish the public report. Such financial and tax information to be provided includes, amongst others, the nature of activities, revenues, profit/loss before income tax etc.

In-scope entities must file the public report with the National Bank of Belgium and, simultaneously, publish it on their company website where it should remain available during an uninterrupted period of 5 years.

Entry into force

The public CbCR obligation applies to financial years starting on or after 22 June 2024 and the report itself should be published within 12 months following the closing date of the financial year for which the report is drawn up. This timing implies that most companies (with financial statements per calendar year) will have to publish the necessary information for the first time by 31 December 2026.

Non-compliance

Non-compliance with this public CbCR obligation can result in fines ranging from EUR 50 to 10,000 and, in case of fraudulent intent, with an imprisonment for a period ranging from 1 month up to 1 year.