Belgium: New R&D incentive regime

Belgium: New R&D incentive regime

A new tax regime for research and development (R&D) known in English as the "deduction for innovation income" is pending enactment. This incentive regime is expected to have broad application, while meeting the concerns of OECD and EU under the so-called “modified nexus approach."

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Background

The notional interest deduction and the patent income deduction are attractive incentives for companies involved in R&D activities and in the exploitation of patents. 

Belgium offers a range of tax incentives enabling companies to structure their R&D activities and value of intellectual property resulting from R&D activities in a tax efficient manner. The comprehensive R&D regime includes:

  • Tax deductions on qualifying intellectual property income
  • Deductions on R&D investments
  • Refundable tax credits
  • Cash savings on payroll cost of researchers
  • A full tax exemption of R&D subsidies

 

Read a December 2016 report prepared by the KPMG member firm in Belgium: R&D incentives in Belgium

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