Innovation Deduction:
Pay less tax on income from innovations
Thanks to the innovation income deduction, you pay considerably less corporate income tax on the income from your intellectual property, including income from patents. We are happy to help you investigate how you can optimally enjoy the tax benefits.
What does the innovation income deduction mean ?
The innovation income deduction is a tax measure that exempts 85% of the net income from certain intellectual property rights from corporate income tax. As a result, the effective tax burden on that income will decrease to 3.75%. For many innovative companies, this means a significant tax benefit and extra room to reinvest in growth.
Get more insight into the innovation income deduction
using a concrete example.
Is your organization eligible?
The innovation income deduction is intended for companies that derive income from, among other things:
- a patent;
- supplementary protection certificate;
- plant breeders’ rights;
- copyrighted software;
- data and/or market exclusivity for plant protection products, medicinal products for human or animal use.
In summary
For whom?
For companies subject to corporate income tax
For what?
For income from certain intellectual property rights
Tax advantage?
85% exempt from corporate income tax