The Belgian “FAQ on DAC6 – Reporting of cross-border arrangements” was released in June 2020 and includes 56 pages providing extensive clarification on top interest questions related to the DAC6 regulations interpretation in Belgium such as:

•   what is DAC6 and when the DAC6 Directive was transposed in Belgium?
•   scope of application, is the reporting of a cross-border arrangement a clue or a fact which could predict the existence of a fraud?
•   which are the arrangements that should be reported? (e.g. the concept of arrangement, which are the conditions to consider that an arrangement is cross-border, how is established that someone is participant in an arrangement? etc.)
•   which are the different hallmarks and examples on each category?
•   the main benefit test (in which cases the arrangement must pass the main benefit test to be reportable?)
•   in which circumstances the main benefit test is passed?
•   the concept of “associated enterprises”
•   who is responsible for the reporting obligation?
•   which is the utility of the unique number attributed following the declaration of a cross-border arrangement?

Regarding the reporting obligation, the Belgian Tax Authorities request the reporting in one of the official Belgian languages (French, Dutch or German) and, additionally in English according to the guidance released (paragraph 13.1 – Principle). The reporting process only in the one of the official languages or only in English will be considered incomplete. If the report is submitted only in the official language or only in English, the report is considered incomplete and a penalty is applicable.

Also, the guidance released mentions that the technical materials and the practical guidelines regarding the reporting process which will be developed by the Belgium Tax Administrations and published at the following link: https://finances.belgium.be/fr/E-services/mandatory-disclosure-rules.

Regarding the interpretation of the main benefit test concept, the Belgian guidelines stipulates that this will mainly result from the following test: “would have been structured the cross-border arrangement in a similar way, if the advantage would not have existed?". Also, the intention of the legislator will be analyzed in Belgium in analyzing the main benefit test (i.e. if the tax advantage obtained from the arrangement is in line with the spirit of the law, respectively, of the national provisions on which the arrangement is based). Another point underlined regarding the main benefit test is the investigation of a fictive situation created through a cross-border arrangement only to obtain a tax advantage, which will not pass the main benefit test (so the analysis implying the main benefit test will include the delimitation of the commercial reasoning and revealing the economic substance of the cross-border arrangement).

More details on MDR implementation across EU Member States & UK on dac6guide.eu