InternationalGlobal R&D Incentives
Global R&D Incentives
The Belgian government encourages specific R&D incentives in the form of corporate tax credits, patent income tax exemptions, wage withholding tax reductions, government grants… But how can your company fully benefit of these advantages?
Our R&D tax professionals are available to assist you in identifying all R&D tax optimisation opportunities for your business.
We can help you with the following:
- The Belgian Patent Income Tax Deduction regime;
- The new Innovative Income Tax Deduction (amongst others for innovative software revenue);
- R&D investment tax deductions and R&D tax credits;
- Investment tax deductions for environmental-friendly investments;
- Wage withholding tax exemption regime for R&D personnel;
- Tax-beneficial regime with respect to income for transfer of author or software copyrights;
- Transfer pricing and group structuring of IP and/or transfer of intangibles;
- Benchmarking of at arm’s length royalty rates for setting license fees;
- First-line advice on R&D and/or investment governments grants.
Our tax and legal practitioners have a strong focus on how to structure new investments and intellectual property rights within the group in a tax-beneficial way, as well as to keep in mind your transfer pricing strategy.
GRANTS AND INCENTIVES
The Belgian government has always had a strong focus on companies involved in R&D activities and provides support via a large number of tax incentives for employers as well as employees.
Innovative income deduction: As from 1 July 2016, the new Innovation Income Deduction replaces the former Patent Income Deduction. Companies can now deduct up to 85% of their net innovation income, which may result in an effective corporate tax rate of 5 percent. Not only granted patents fall within the scope, but also copyrighted software and process innovation. The qualifying income comprises royalties, license fees (embedded in sales prices), as well as capital gains. Further to the BEPS Report on Action 5 (“Modified Nexus Approach”), the tax deduction is calculated on the net income and subject to a specific formulae.
GLOBAL R&D INCENTIVES
Innovative companies play a key role in our economy. Governments worldwide have therefore foresee in multiple R&D incentives to encourage additional research and innovation by businesses.
Also the Belgian government is providing its fair share and foreseeing in specific R&D incentives in the form of corporate tax credits, patent income tax exemptions, wage withholding tax reductions, government grants. etc.