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 5.10%.
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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.
To stimulate the economy of Flanders and encourage production of high-tech products, this deduction is awarded to companies in any sector investing in new assets used in high-tech production.
Looking to hire staff for your R&D activities? Flanders gives companies payroll tax incentives for such employees, and also to workers engaged in night, shift work and high-tech production.
Government agency Flanders Innovation & Entrepreneurship (VLAIO) provides structural funding for short-term development projects (up to 50%) and long-term research projects (up to 60%).
Expatriate status in R&D allows tax-free expatriation in Flanders.