Flanders' tax incentives for foreign businesses with R&D activities
Is your company active in R&D, technology development and patent registration? You're right on track to benefit from the numerous tax advantages that Flanders offers to Belgian and foreign companies engaged in these activities.
Innovation income deduction (up to 85%)
This fiscal deduction scheme enables organizations to deduct up to 85% of their net innovation incomes from their taxable base – resulting in an effective tax rate of 4%.
Numerous tax breaks for R&D investments
These deductions and credits are offered to companies with fixed assets that promote R&D aimed at the development of eco-friendly new technologies.
Many advantages for employing R&D staff in Flanders
Looking to hire staff for your R&D activities? Flanders gives companies payroll tax incentives for such employees, and for workers engaged in night and shift work.
Structural funding for R&D projects
Government agency Flanders Innovation & Entrepreneurship (VLAIO) finances R&D activities carried out by and/or for Flanders-based companies. Two main support instruments are available: for research projects and development projects. In addition, you can request support for a feasibility study as well.
Special tax status for inpatriates and inpatriate researchers
If you recruit or post executives and researchers from abroad in Flanders, your company may benefit from a reduction of Belgian income tax and social security contributions. There are specific conditions, though. For instance, the employee in question must earn a gross annual salary of over EUR 75,000 (not applicable for researchers) and must have been living at a distance of at least 150 km from the Belgian border prior to their arrival or the start of their activities in Belgium.
If these and other conditions are met, a lump-sum reimbursement of up to 30% of the annual gross salary is available (capped at EUR 90,000).