Belgium: Transfer Pricing

Belgium's tax administration has issued a crucial circular clarifying the application of the new capital gains tax on financial assets, addressing key uncertainties around realization timing, earn-out structures, partnership vehicles, and historical exemptions. The guidance provides essential insights for taxpayers navigating payment modalities, matrimonial property regimes, and the complex interaction between the tax and existing corporate structures.

In a recent ruling, the court of first instance of Brussels has reviewed and assessed a Belgian company's credit rating for determining the arm's length interest rate under an intercompany loan.