Tax credit for R&D and Patents
In Belgium there is wide range of incentives available for research and development activities, inclusive of cash grants, loans, tax credits, patent income deductions, and investment deductions for R&D. In particular, the Belgian government offers investors a benevolent and attractive regime for R&D activities and intellectual property management.
Description of Incentive
A R&D tax credit is available as a deductible component from the corporate income tax due. The extent of the credit available is the investment deduction multiplied by the corporate tax rate (33.99%). Calculation of the credit is diverse for each company making the claim, however, the process ensures that the advantage is comparable for all companies due to the pegging to the corporate tax rate.
The credit may also be calculated as a one-shot credit or diffused over the depreciation period. A cash benefit may apply to the company when the excess credit has been carried forward, if the remaining balance after five years is refunded.
Claiming the R&D tax credit is applicable to the following:
- Tangible and intangible assets used for new products and technologies. These technologies must not have a negative impact on the environment (essentially requirement to be a green investment), inclusive of capitalised expenses under Belgian GAAP
The R&D credit may be applied to current and future investments and can be claimed in the corporate income tax return. Applicants must include a completed 275U form enclosed with their application with substantiation documents proving R&D activities. The tax credit should be claimed in the same fiscal year that the activities ensued.
Swanson Reed offers the following services:
- Advice on tax preparation relevant to claiming the R&D tax credits incentive
- Preparation of documents relating to filing and substantiating a R&D taxation claim
- R&D tax advice and consultations
- R&D tax claim planning and preparation
For a full range of services in relation to the credit, please click here.