- Overview of Amendments: The circular discusses amendments to specific articles of the Programme Act of December 22, 2023, which affect income tax procedures in Belgium, including Articles 13, 14, 31, 32, 38, and 43.
- Changes to Article 344, WIB 92: The amendments clarify that the tax authorities cannot hold taxpayers liable for certain transactions involving shares and other financial instruments unless the taxpayer can prove that these transactions are genuine and not primarily aimed at avoiding taxes. This aligns with the European Court of Justice’s ruling on tax abuse.
- CFC Reporting Requirements: Article 307 is amended to require taxpayers subject to corporate income tax to declare any foreign companies or establishments considered as Controlled Foreign Companies (CFCs). Specific information about these entities must be reported in the tax return, enhancing transparency.
- Legal Structure Disclosure: Taxpayers must now include an appendix with their personal or corporate income tax returns detailing any legal structures they are associated with, including identification data and income details. This is intended to facilitate the monitoring of tax compliance and budgetary oversight.
- Effective Date of Amendments: The amendments to the various articles will take effect from January 1, 2024, applying to transactions and income reported from that date onward.
Source Fisconet
