Law on innovation income deduction: finally published

Written by Daniel van Herck :: [Monday, 13 March 2017 15:28]
Created Monday, 13 March 2017 Hits 433 views
Finally, the new innovation income deduction (IID) has entered into force. On 20 February 2017, the law with respect the IID has been published in the Belgian Official Gazette. The patent income deduction regime (PID) has been replaced with the IID regime in order to make it BEPS compliant, i.e. avoiding that business profits would be shifted artificially to a country with a beneficial regime for intellectual property (IP). In contrast to the PID regime, the qualifying patent/innovation income will be calculated on a net basis. The percentage of this deduction will be raised from 80% under the PID regime to 85% under the IID regime resulting in an effective tax rate of 5.1% over the life time of the IP. The new regime entered into force on 1 July 2016. more on
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