Does Belgium offer tax incentives for innovation?

Knowledge Center

Belgium remains one of the most generous countries in terms of R&D. Among its incentives are the partial exemption from payment of the researchers’ withholding tax (PPTE) and the innovation income deduction (IID). The money is available, but it is up to companies to go and get it… and this is not always a simple task.

Taxation serving to boost innovation

This document explains the latest developments in this area, the main principles involved and the right questions to ask yourself.

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The innovation income deduction (IID)

For several years, the Patent Income Deduction (PID) was the benchmark for tax incentives for innovation. Now it is called the Innovation Income Deduction (IID). The IID incorporates several new features that are fundamental to benefiting from it.

What criteria determine your eligibility for the PPTE?

The legislator has extended the scope of the exemption from withholding tax (PPTE) to all companies employing researchers. However, the eligibility conditions and the calculation rules vary depending on the category you belong to. What do you need to take into account?

The partial exemption from payment of withholding tax (PPTE)

This tax mechanism is one of the most popular among Belgian companies. But using it remains complex. Knowing whether your project falls within the scope of R&D is one of the main difficulties. So it is important to be well supported.

Our scientists and tax specialists will assist you all the way

From identifying eligible projects, right through to obtaining reductions in corporation tax. Our experts will also ensure that your business optimises its Innovation Income Deductions.

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