ARTICLE · 04 MAY 2023

Tax Advantage For Innovation In Belgium

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Belgium has a few separate tax schemes that apply to acquired IP rights. For instance, the innovation allowance for innovation income.

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VO Patents & Trademarks

Belgium has a few separate tax schemes that apply to acquired IP rights. For instance, the innovation allowance for innovation income. This means that 85% of the net income ensuing from IP rights is exempt from corporate income tax. The innovation allowance has been in place since 2020 and applies to IP rights acquired as of 1 July 2016.

Belgium furthermore has the so-called tax credit. In contrast to the innovation allowance, which is applied as a deduction from the taxable results, the tax credit is a tax reduction on the amount of corporate income tax owed.

Both domestic and foreign corporations having a fixed place of business in Belgium are eligible for the innovation allowance, or as the case may be, the tax credit.

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