Since the introduction of the notional interest deduction and the patent income deduction, Belgium increased its attractiveness as a prime location for companies involved in research and development activities and in the exploitation of patents. Belgium offers a full range of tax incentives enabling companies to structure their R&D activities, as well as the valorization of the intellectual property resulting from R&D activities, in a tax efficient way.
This comprehensive R&D regime includes an 80% deduction on qualifying patent income from the taxable basis, deductions on R&D investments and (refundable) tax credits, cash savings on salary cost of researchers and full tax exemption of qualifying R&D subsidies. Besides these R&D specific tax incentives, other tax measures (such as notional interest deduction and a wide tax treaty network) also contribute to the favorable investment climate.
More information can be found in the attached leaflet.