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Our areas of expertise include:
- International tax law
- Permanent establishment in Belgium
- Income tax in Belgium
- International wealth management
- Expats
- Tax disputes
- VAT
- Fiscal representation
We also assist our clients in tax disputes and litigation. Our services include representation in out-of-court proceedings before the tax authorities, as well as in tax court proceedings. Tax proceedings in Belgium consist of several stages, each with its own deadlines and formalities. It is therefore advisable to seek advice from the outset in order to determine the best course of action and avoid unpleasant tax surprises.
1. The tax return in Belgium
The taxation process begins with the filing of a tax return. It is therefore important to know whether you have to file a tax return in Belgium and, if so, what you have to declare. This is often a problem for foreign companies, as foreign companies sometimes wrongly assume that they do not have to file a tax return in Belgium. In practice, we find that foreign companies that have carried out work or provided services in Belgium, for example, that do not constitute a permanent establishment under the applicable double taxation treaty, are often unaware that a so-called „Belgian permanent establishment“ may nevertheless be created in this case, so that a zero return has to be filed in Belgium.
2. Control
International companies are increasingly coming under the scrutiny of the tax authorities, leading to discussions about permanent establishments, transfer pricing, personnel, VAT, etc. The tax authorities have the right to review your tax situation within certain time limits. To this end, the tax authorities have various investigative powers which, in an international context, mainly consist of requesting information from your company or your Belgian clients.
If your company has filed a tax return in Belgium or assumed that no tax return was required, you may suddenly be surprised by a request for information from the Belgian tax authorities. In order to avoid having to pay taxes or fines in Belgium, it is important that you respond to this request for information in a timely and reasoned manner. In many cases, the matter can be resolved at this stage in consultation with the tax authorities.
3. Assessment ex officio or amendment of the tax return
If the Belgian tax authorities disagree with your position and consider that certain income is taxable in Belgium, this may result in an ex officio assessment (if no tax return has been filed) or an amendment notice by which the tax authorities amend the tax return (if a tax return has been filed). If you disagree, you can lodge an appeal.
4. Objection
If the Belgian tax authorities maintain their position, they will assess the tax and issue a tax assessment based on the amended information. We review the tax assessment and can then lodge an appeal if necessary. At this stage, you have the right to inspect the administrative file and to speak to the tax administration. An amicable settlement is still possible.
5. Litigation in Belgium
Should the objection be rejected, the only remaining option would be to pursue the matter in a court of law. In court proceedings, the decision is no longer made by the tax authority itself, but rather by a neutral judge. It is imperative to initiate court proceedings at the court of first instance. Should either party be dissatisfied with the court’s decision, an appeal can still be lodged.
Conclusion
It is advisable to seek assistance at the outset rather than waiting until a later stage. After all, tax litigation is a technical matter. Our tax lawyers are specialised in providing expert defence in direct and indirect tax disputes and other tax-related matters as soon as a potential dispute arises. Many tax disputes can be resolved through administrative proceedings, thus avoiding the need for litigation. We always aim to find a satisfactory solution with the tax authorities. However, if this is not possible, we can represent your case in court.
Do you have any questions?
Please do not hesitate to contact our tax experts, Sofie Jacobs or Thomas Hermie, if you have any questions about Belgian tax law. Our tax team will be happy to assist you.
