The patent income deduction (“PID”) / innovation income deduction (“IID”) is a fiscal incentive to promote research and development activities in Belgium. Companies that innovate can, based on this fiscal regime, exempt 80% (PID) / 85% (IID) on the qualifying income from their taxable base. As a result of the BEPS-action plan, the PID will phase out on June 30, 2021 and will be replaced with the IID.