Branches

Statutory accounts, legal books and publication obligations

Belgian branches are subject to Belgium’s accountancy laws and consequently have to keep separate books and organise their accounting records according to local rules. Non-compliance can result in serious penalties. PricewaterhouseCoopers offers a range of services that can help you ensure compliance.

Did you know that Belgian branches of foreign companies have to …

 … prepare statutory accounts?

With some exceptions, branches have to draw up annual statutory accounts, including notes and accounting principles for their Belgian business activities. Their statutory accounts are enclosed with their tax return and have to be entered in their inventory records.

… file their accounts with the National Bank?

Foreign companies with a branch in Belgium have 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 workforce balance sheet
  • its annual accounts
  • its annual report
  • any consolidated accounts in the standard official form they are drawn up in, audited and published according to the parent company’s laws. They must be published in the branch’s official language (French, Dutch or German).

Documents

All books, accounting records and documents, charts of accounts, legal books and legal print-outs have to be kept and held in Belgium. Accounting information should be directly accessible in Belgium.

Tax obligations

Belgian branches have to comply with Belgium’s tax rules, which means that they have to file a non-resident corporate income tax return.

Depending on the Belgian branch’s costs, other formalities may need to be complied with as well.

Besides (legal) branches, establishments qualifying as permanent establishments for the purposes of corporate tax are also subject to these formalities. Whether or not an entity has a Belgian permanent establishment depends on the tasks carried out here.

Statutory penalties

  • Fines from EUR 50 to 10,000 (to be multiplied by 5).
  • In cases of fraud, the company’s officers may be liable to imprisonment and fines.
  • Legal representatives are jointly and severally liable.

What can PwC offer you?

PricewaterhouseCoopers can assist you in ensuring your Belgian branch complies with its accounting obligations:

  • updating accounting records and preparing VAT returns
  • year-end closings
  • statutory annual accounts
  • management reports and group reporting forms
  • inventory ledgers and centralisation journals
  • statutory compliance
  • compliance of (foreign) accounting software with Belgian requirements
  • acting as outsourcer for Belgian administration tasks
  • analysing Belgian activities for permanent establishment exposure
  • non-resident corporate income tax returns
  • advance tax payment calculations
  • fee forms 281.50
  • withholding tax formalities