Belgium offers two key R&D tax incentives:
- An exemption of 80% of the payroll withholding tax (wage tax) for PhD and Master’s qualified employees and 40% of the wage tax for Bachelor’s qualified employees working on R&D projects. This partial exemption benefits the employer and does not affect the net salary of the ‘researcher’, reducing the effective employment cost for R&D activities.
- A 13.5% one-off deduction or a 20.5% per year spread investment deduction for fixed assets recorded on the balance sheet. The deduction applies to the development or acquisition of patents and assets used to promote R&D of new products/services and advanced technology that is environmentally friendly.