The Circular 2020/C/95/Frequently Asked Questions (FAQ) (Dutch version / French version) on the Belgian innovation deduction was published on July 8, 2020. The innovation deduction provides for a deduction of 85% of the net income from intellectual property (IP). This results in an effective tax rate of 4.4% (2019) and 3.8% (as from 2020) on the net income.
The FAQ provides more guidance on the interpretation of the law dd 09.02.2017 and replaces the FAQ of July 26, 2018. In this FAQ more focus has also been put on the documentation requirements taxpayers need to have in place when applying the innovation income deduction.
More information on R&D tax incentives can be found here.
Tine Slaedts - Partner (firstname.lastname@example.org)