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%.
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Flanders' tax incentives for foreign businesses with R&D activities
These deductions and credits are offered to companies with fixed assets that promote R&D aimed at the development of eco-friendly new technologies.
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.
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.
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).