• Service: Tax, International Tax
  • Type: Regulatory update
  • Date: 12/5/2013

Belgium - EC investigates R&D incentives, tax exemption 

December 5:  The European Commission announced the launch of “an in-depth investigation” to determine whether Belgium’s implementation of a system of support for innovative companies—i.e., research and development (R&D) incentives—is in line with EU rules on state aid.

According to the EC release, the examination will consider terms under which a certain number of Belgian companies have benefited from tax relief. Specifically, the EC will examine a R&D inventive system (approved in 2006) that exempted certain innovative companies from paying payroll tax on a portion of remuneration paid to scientific personnel.

Originally, Belgium had pledged to incorporate into its laws the definitions of the types of research eligible for tax breaks under European rules on state aid for research, development, and innovation. However, the EC subsequently found out that Belgium had not introduced these definitions until 2013—seven years after the R&D system had been approved.

The EC stated that at this point in the investigation, Belgium had not provided sufficient information to dispel certain EC doubts.

©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International.

KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.

The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Direct comments, including requests for subscriptions, to
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.


Share this

Share this


Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)

Already a Subscriber? Login

Not a member? Subscribe now