10 tax action items to wrap up your (financial) year end

As 2025 is limping towards the finish line, and the holiday season is already peaking around the corner, now is the perfect time to pause… and plan ahead for the new financial year. Before you know it, 31 December will be here but don’t panic, we have listed 10 action items to wrap up your (financial) year end:

• Corporate income tax prepayments: The last quarterly prepayment for 2025 (calendar year) is due by 22 December 2025. Paying on time avoids penalties and improves your tax outcome.
  
  
• Pillar II - QDMTT prepayments and QDMTT return: If your company is part of an MNE group or large-scale domestic group and expects to be subject to the domestic minimum top-up tax (QDMTT) and/or the income inclusion rule (IIR) in 2026, prepayments can also be made until 22 December 2025. The deadline to file the QDMTT return for financial year 2024 has been extended to 30 June 2026 for taxpayers whose financial year started on or after 31 December 2023, ended at the earliest on 1 January 2024 and at the latest on 30 June 2025.
  
  
• Provisions for risks and costs. Year-end is an appropriate time to assess provisions. Only provisions arising from contractual, legal or regulatory obligations existing at the balance sheet date can be considered tax-exempt. In addition, other specific conditions must be met for such provisions to qualify for tax exemption, including proper documentation and clear identification of the underlying costs.
  
  
• Belgian tax consolidation—Group Contribution Regime: Companies within the same group may consolidate their results for tax purposes through the group contribution regime if they meet certain conditions. Eligible parent-subsidiary or sister companies must have at least 90% participation for an uninterrupted five-year period, calculated from January 1st of the fourth calendar year preceding the tax year in which you want to use the regime. Reviewing the group structure before year-end is recommended to ensure eligibility for future use of the regime.
  
  
• Spread taxation on capital gains: Under certain conditions, capital gains realized on fixed assets may be taxed over multiple periods. To qualify, the sales value must be reinvested in eligible fixed assets within a specified timeframe. It is advisable to verify whether any qualifying capital gains were realized during the financial year and ensure appropriate accounting treatment when applying this regime.
  
  
• Premiums and grants: We recommend to verify whether ecological or energy-efficient investments are eligible for a premium or grant. For most governmental incentives, a request should be filed by the company, often in advance of project commencement. Consequently, a thorough and timely review of potential premiums and grants applicable to projects that will start in the course of the upcoming year is recommended. Additionally, please consider relevant tax regulations, as certain premiums and grants received may qualify for tax exemption.
  
  
• Withholding tax on dividends, interest, and royalties: If you pay or attribute dividends, interest, or royalties before year-end, withholding tax must generally be declared and paid within 15 days following payment or attribution. Check if any reductions or exemptions apply to your situation.
  
  
• Transfer Pricing documentation: local file (form 275LF), master file (form 275MF) and Country-by-country notification (form 275 CBCNOT): Belgian companies in multinational groups may need to submit form 275LF within the same deadline as the corporate tax return, form 275MF within 12 months after the group’s reporting period end (e.g. by 31 December 2025 for a 2024 calendar year-end) and if applicable, form 275 CBCNOT by the last day of the group’s reporting period. This CBC notification is required only for initial notifications, changes in reporting circumstances, or when the group is no longer subject to the notification requirement. On 17 December 2025, the Belgian tax authorities have announced that the deadline for the submission of the 2025 Country-by-Country notification (275.CBC.NOT) has been postponed to 28 February 2026 for financial years closing on 31 December 2025 because of technical difficulties with the new XML tool and to facilitate compliance with the reporting obligations.
  
  
• Dividend received deduction (DRD) - additional qualitative requirement: The Program Law of 18 July 2025 introduced a new qualitative measure relating to the participation condition. As of assessment year 2026, participations under 10% with an acquisition value over €2.5 million qualify for DRD only if they qualify as “fixed financial assets”.
  
  
• Mandatory Belgian B2B e-invoicing: Go-live as of 1 January 2026, although tolerance period foreseen during Q1 2026 for specific breaches and subject to conditions. As some of your suppliers/customers may not be ready timely, ensure to have clear instructions for your AP/AR teams to cope with multiple AP/AR processes. If your own organization’s e-invoicing solution is not yet ready, alternatives can be considered to be compliant with minimal manual effort and little integration effort, depending on volume of transactions per month.
   

Once you have ticked these boxes, take time to recharge! You can start your holidays with peace of mind and spend some quality time with your loved ones! Enjoy the holiday season and start FY2026 refreshed.

In case of any further questions, please reach out to your local EY contacts who will be more than happy to assist you.