Belgium's advance ruling practice: a powerful risk management instrument in tax planning

The Belgian ruling practice relies on a long tradition of both informal and formal rulings (since 1993). In 2003, a generalised advance ruling system was introduced and a fully independent ruling office with sufficient numbers of dedicated staff has been in place since 1 January 2005. The objective of the office is to make the new ruling practice more cooperative and client- and result-oriented.

Benefits of an advance tax ruling:

• Very broad scope including transfer pricing, M&A, private equity issues
• VAT treatment, personal income tax, customs and excise, etc.
• Possibility to rule on global business cases
• Cooperative and constructive mindset of the new ruling office
• A positive decision binds the Belgian tax authorities
• A processing time of 3 months (indicative timeframe)
• Valid for 5 years or more
• Pre-filing meetings possible on a “no-name” basis, without any obligation to file a ruling application afterwards

Note that any relevant advance income tax rulings in other EU Member States should be disclosed and the application should cover a “specific, concrete” operation that is effectively envisaged and will be realised in the foreseeable future.