Belgium
Belgium offers two key R&D tax incentives:
- An exemption of 80% of the payroll withholding tax (wage tax) for PhD and Master’s qualified employees as well as 80% of the wage tax for Bachelor’s qualified employees working on R&D projects. This partial exemption benefits the employer and does not affect the net salary of the ‘researcher’, reducing the effective employment cost for R&D activities.
- A 13.5% one-off deduction or a 20.5% per year spread investment deduction for fixed assets recorded on the balance sheet. The deduction applies to the development or acquisition of patents and assets used to promote R&D of new products/services and advanced, eco-friendly technology.
Small Enterprises (SE)
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Medium sized and Large Companies (MLC)
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Benefit Overview
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R&D Tax Credit: the corporate tax deduction is equal to the calculated R&D investment deduction multiplied by the applicable CIT rate. |
R&D Tax Credit: the corporate tax deduction is equal to the calculated R&D investment deduction multiplied by the applicable CIT rate. |
Eligible Claim Period
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Note: The partial wage withholding tax exemption is applicable only to projects that have been notified before the start of the project to the Belgian competent authority. Based on this rule, the Belgian tax administration takes the position that a retroactive application (i.e. application for the past once notification is done) is not allowed.
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Historical Background
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Application Process
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Regulating Body Practices
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Federal Public Service of Finance, the Belgian tax administration, is the regulatory body. | |
Eligible Costs
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Issues to Consider
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