- States mentioned on a list of States without or with a low level of taxation which means having a nominal corporate tax rate below 10% (art. 179 RD/BITC 1992) (the government is currently preparing an update of that list);
- States which, during the entire taxable period in which the payment is made, are considered by the Global Forum on Transparency and Exchange of Information for Tax Purposes as not applying the OECD standard for the exchange of information “effectively or substantially“.
Regarding the second category, the OECD published the first results of its Peer Review in November 2013. Luxembourg, Cyprus, the British Virgin Islands and the Seychelles were deemed to be non-compliant with the OECD standard whereas Austria and Turkey were deemed as partially compliant.
In response to a recent parliamentary question, the Minister of Finance has stated that payments made to Luxembourg, Cyprus, the British Virgin Islands and the Seychelles fall in the second category and must therefore be reported for each taxable period beginning as from December 1, 2013. In most cases, this means that such payments must be mentioned in form 275F which must be joined to the corporate tax return for assessment year 2015 (financial years ending on or after December 31, 2014).
However, the Minister of Finance adds that if the Global Forum will no longer deem these States as non-compliant during a taxable period (e.g. financial year 2014), the reporting obligation will not apply for that taxable period.
The Minister ends by saying that payments to Austria and Turkey, the two States which were deemed partially non-compliant, do not fall in the second category and are thus not concerned by the reporting obligation.
For some States, like Switzerland, the Peer Review has not been finalized yet, so until further notice these States are also not concerned by the reporting obligation.