Innovation Income Deduction and Patent Subsidies
To stimulate innovation in companies, the Belgian government has created the innovation income deduction. In addition, as an SME, you can apply for patent subsidies and premiums at regional, federal and European level.
Innovation Income Deduction
Does your company own patents? Then you can exempt your income from your own innovations from corporation tax for a maximum of 85% via the innovation income deduction. The innovation income deduction therefore results in a reduced tax burden for innovative companies in Belgium. See our brochure to see how to calculate the innovation income deduction.
Regional subsidies
In addition to the innovation income deduction, there are various subsidies and support measures at European, federal and regional level. In this way, you can get part of your investment in patents refunded.
Benefit financially from your intellectual property
We are happy to map out your innovations for you and advise you on subsidies and tax benefits.
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Clear answers to every IP question
Why is an IP strategy important?
The right IP protection strengthens your market position. It grants exclusive rights to commercialise your invention, trademark or design and creates a substantial competitive advantage. Your intellectual property is also an intangible asset on your balance sheet and therefore an added value to your company. In addition, IP can offer financial benefits through the patent deduction for inventions. Small-sized companies can use patents to boost their competitiveness. Larger companies often manage broader IP portfolios, making it essential to monitor each individual IP asset while maintaining a clear overall view.
What does the innovation deduction or patent deduction involve?
The innovation deduction allows a company to deduct up to 85% of its net innovation income from its taxable corporation tax base. The revenue to be considered includes licence fees, such as royalties, revenue from the sale of patent rights and any damages received. The related R&D expenses incurred in the year in which the revenue was generated as well as the historical R&D expenses linked to the intellectual property right need to be deducted from this revenue. The historical costs may be spread over a period of up to seven fiscal years. To give you a clear view of the optimal application of the innovation deduction, we map your intellectual property portfolio in detail. If you want, we involve tax specialists to support you in applying the innovation deduction.