The Belgian Parliament has approved a draft law that introduces a deduction for innovation income. The legislation will be published in the Belgian official gazette shortly. The new regime will replace the patent income deduction (that was previously repealed but with a “grandfathering period” until 30 June 2021) because the patent income deduction was found not to be in line with the OECD “modified nexus approach.” The new deduction for innovation income will be effective retroactively as from 1 July 2016.
The main features of the new regime are:
Read a February 2017 report [PDF 120 KB] prepared by the KPMG member firm in Belgium
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