What:
- The 85% deduction of innovation income can be beneficial for eligible companies, reducing the effective tax rate of qualifying innovation income (including realized capital gains by selling of IP rights) to approximately 4%. This means your business would pay 25% (or 20%) corporate income tax on only 15% of the qualifying income. A tax ruling can be requested to obtain legal certainty regarding the conditions and calculation methodology of the innovation deduction. A pre-filing phase can be done anonymously.
For whom:
- All businesses, including SMEs, are eligible if they are subject to corporate income tax in Belgium, as well as all international companies with permanent establishments located in Belgium.
For what:
The following types of IP qualify for the deduction:
- Patent
- Supplementary protection certificate
- Plant breeders’ rights
- Copyright software
- Orphan drugs
- Data and/or market exclusivity for plant protection products
- Process innovation
- However, all marketing-related IP (e.g. trademarks) are excluded
