www.pwc.be 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 Please contact: 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 PwC firms help organisations and individuals create the value they’re looking for. We’re a network of firms in 158 countries with close to 169,000 people who are committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at www.pwc.com. “PwC” is the brand under which member firms of PricewaterhouseCoopers International Limited (PwCIL) operate and provide services. Together, these firms form the PwC network. Each firm in the network is a separate and independent legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way. © 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.