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Branches
Statutory accounts, legal books and publication obligations
Tax Management and
Accounting Services
Belgian branches are subject to the
Belgian Accountancy Act of 17 July
1975 (sec 1(2)). Consequently, they are
obliged to keep a separate bookkeeping
and to organise their accounting books
and records according to Belgian legal
requirements. If the branch does not
comply with Belgian law, it could result
in serious penalties. PwC offers a range
of services that can help you ensure
compliance.
Did you know that Belgian
branches need to comply with
the following rules?
Statutory accounts
Branches have to draw up annual statutory
accounts, including notes and valuation rules
(RD of 30 January 2001, sec. 22) for their
Belgian activities, except where the branch
has no income of its own AND the operational
costs are fully borne by its head office (Acc.
Act of 17 July 1975, sec. 10(5°)).
The statutory accounts will be enclosed with
the branch’s non-resident tax return and have
to be included in the inventory book. There is
no obligation to publish the Belgian statutory
accounts.
Filing with the National Bank of
Belgium
Any foreign company that has a branch in
Belgium has to file the following with the
National Bank of Belgium in the official
language of the branch:
• page 1 of its Belgian statutory accounts;
• its Belgian social balance sheet;
• its annual accounts;
• its annual report;
• if applicable, its consolidated accounts in
the standard official form in which they
have been drawn up, audited and published
according to the law applicable to the
parent company. They must be published in
the branch’s official language, be it French,
Dutch or German.
Documents
All books, accounting records and documents,
charts of accounts, legal books and legal printouts need to be kept and retained in Belgium.
Accounting information should be directly
accessible in Belgium.
Did you know that Belgian branches need to comply with the
following rules? (cont’d)
Our experts
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Tax services
Belgian branches have to comply with the
Belgian tax rules, meaning that they have
to file a non-resident corporate income tax
return with the competent tax office.
Depending on the costs incurred in the
Belgian branch, other formalities need to be
complied with as well.
Besides (legal) branches, establishments
that are considered to be permanent
establishments from a corporate tax
viewpoint are also obliged to comply
with the above formalities. Whether or
not an entity has a Belgian permanent
establishment will depend on the activities
being performed in Belgium.
Legal penalties
• A fine of EUR 50 to 10,000 (to be
multiplied by 5) can be imposed.
• There can be liability to a term of
imprisonment and a fine if the company
has acted with fraudulent intent.
• Legal representatives are jointly and
personally liable.
What can PwC offer you?
PwC can assist you in ensuring your Belgian branches comply with the Belgian Accountancy Act
of 17 July 1975 (sec. 1(2)) by:
• updating accounting records and
preparing VAT returns;
• taking over Belgian administrative tasks
on an outsourcing basis;
• assisting with year-end closing;
• analysis of the activities performed
in Belgium in view of the Permanent
Establishment exposure;
• assisting with the preparation of annual
statutory accounts;
• assisting with the preparation of
management reports and group reporting
forms;
• assisting with the completion of the
inventory book and centralisation
journals;
• providing advice and assistance
regarding compliance;
• making an assessment of the conformity
of (foreign) accounting software with
Belgian requirements;
• assistance in preparing the Belgian nonresident corporate income tax returns;
• assistance in calculating advance tax
payments;
• assistance in preparing fee forms 281.50;
• assistance in completing withholding tax
formalities.
Dirk Vermussche
Partner in charge
Tel: +32 2 710 71 00
E-mail: dirk.vermussche@pwc.be
Joeri Aertssen
Director
Tel: +32 2 710 47 45
E-mail: joeri.aertssen@pwc.be
Jorgen Broothaers
Director
Tel: +32 2 710 71 83
E-mail: jorgen.broothaers@pwc.be
Peter Busschots
Director
Tel: +32 2 710 71 28
E-mail: peter.busschots@pwc.be
Katelijn Callewaert
Director
Tel: +32 3 259 31 51
E-mail: katelijn.callewaert@pwc.be
Koen De Grave
Director
Tel: +32 3 259 31 84
E-mail: koen.de.grave@pwc.be
Lieven Schoonjans
Director
Tel: +32 2 710 74 35
E-mail: lieven.schoonjans@pwc.be
Patrick Mathieu
Director
Tel: + 32 4 220 62 62
E-mail: patrick.mathieu@pwc.be
Your first contact:
Tonny Taeymans
Director
Tel: +32 2 710 71 12
E-mail: tonny.taeymans@pwc.be
PwC – Tax Management and
Accounting Services
Woluwe Garden - Woluwedal 18
B-1932 Sint-Stevens-Woluwe
Tel: +32 2 710 42 11
Fax:+32 2 710 42 99
www.pwc.be
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© 2012 PwC Belgium. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate and independent legal entity.