# Innovation Income Deduction: 

 

 

 



  
##### 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

 

 

 

 

 Contact one of our experts

 

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### Kelly-Jayne Aylward, PhD

Managing Partner Grants & Incentives

 

 

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### Sonja Vancrayenest

Managing Partner Moore Grants & Incentives

 

 

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