Belgium on May 12 published a royal decree listing the jurisdictions recognized as tax havens in conjunction with the new reporting requirement that entered into force on January 1.

All Belgian companies and permanent establishments of foreign companies must report in their income tax returns all (direct and indirect) payments in excess of €100,000 made to tax havens from January 1, 2010. Payments that are not reported are disallowed, and payments that are reported are only allowed as expenses if the taxpayer can justify that the payment was made in the context of an ‘‘actual and genuine transaction’’ with ‘‘persons other than artificial tax avoidance schemes.’’ 

Belgium defines tax havens as any countries that during the whole tax period during which the relevant payment has been made, have either been qualified by the OECD Global Forum on Transparency and Exchange of Information as countries not having substantially and effectively implemented the OECD exchange of information standard or are listed in a royal decree (read the full article).

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