Investigation, assessment and retention periods – back to how it was?
27 Oct 2025
On 14 October 2025, the Belgian parliament adopted the provisions in the draft law on various tax and financial provisions that largely reverse the 2022 reform of the statutes of limitation in direct tax and VAT procedures. In practice, the new provisions replace the layered 3/4/6/10-year regime introduced as of assessment year (AY) 2023 and partially return to the old system, with a three-year ordinary investigation and assessment period and a seven year-period in case of fraud, completed with a four-year period for late/non-filed and “complex” income tax returns.
The 2022 reform partially reversed
The 2022 tax procedure reform, effective from AY 2023, brought major changes to the statutes of limitation in direct tax and VAT procedures (see our Newsflash of 23 August 2022). Up to then, a three-year period applied, which was extended to seven years in case of fraud. For reportable legal constructions, a ten-year period applied.
The aim of the reform was to give the tax administration more time and flexibility to tackle complex cases and fraud, and to help it meet international obligations for information exchange. Therefore, the following additional extended periods had been introduced:
Four years for late or non-filed returns
Six years for “semi-complex” income tax returns, i.e. for companies subject to transfer pricing reporting obligations, companies that are making payments to tax havens, companies applying for withholding tax exemptions or Foreign Tax Credits or in case the authorities obtain DAC6 information
Ten years for “complex” income tax returns (hybrid mismatch constructions, application of CFC rules, reportable legal constructions) as well as for fraud.
These statutes of limitations are now being adjusted again. As a reason for the current reform, it is stated that the wide variety of deadlines had become too complex for the tax administration to manage and too unpredictable for taxpayers, which threatened to bring legal uncertainty and unnecessary disputes.
While maintaining the ordinary three-year period for timely returns, the new provisions streamline investigation and assessment periods as follows:
A four-year period for late/non-filed returns and for “complex” income tax returns. The former classifications as “semi-complex” or “complex” income tax returns are now all treated as “complex”, and fall under a uniform four-year period.
A seven-year period in case of fraud. In income taxes, investigations within this period can only take place on the condition that the tax authorities notify the taxpayer, in a written and sufficiently precise manner, of the indications of fraud for the period concerned. Such a notification is also required prior to a VAT adjustment within this extended fraud period. This notification is a mandatory requirement for the tax assessment to be valid.
This condition was alleviated by the procedural reform of 2022, following which the indication of mere suspicions of fraud sufficed. However, this alleviation has also been reversed as of AY 2023, so this reform has never been implemented.
Similarly, the retention period for books and records, which was set at ten years by the reform of 2022, has also been reversed again to seven years.
Entry into force
The new deadlines apply retroactively as of assessment year 2023 onwards, with the result that the reform of 2022 will never have been in effect. Concretely, this means that for AY 2023 for example, the audit and assessment period will now expire on 31 December 2025 (for ordinary, timely filed tax returns) or 31 December 2026 (for late and complex tax returns). Under the procedural reform of 2022, the period would have expired on 31 December 2028.
Regarding legal constructions in particular, these can still be investigated during a ten-year period for assessment years up to 2022, while from assessment year 2023 onwards, they fall under the new four-year period, creating a potential inconsistency in practice.
Key takeaways
The reversal of the reform of assessment, investigation and retention periods is a welcome simplification, yet the statutes of limitations in Belgian tax law remain very complex given the many conditions and exceptions.
If tax audits or tax adjustments are announced, it is important to verify whether the procedural periods have correctly been applied.
Don’t hesitate to contact us for further assistance or questions on this matter.
Author: Agata Schroyen
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