Notional Interest Deduction
An innovative and powerful measure in international tax law enabling companies to deduct from their taxable income fictitious interest calculated on the basis of their shareholder's equity (net assets).
This is a tax advantage allowing a specific percentage of the purchasing or investment value of the investments made during the taxable period to be deducted from taxable profits.
Tax Incentives for R&D Activities
In Belgium we cherish our knowledge economy, which is in part driven by foreign knowledge inputs. Foreign actors are attracted by our technology and networks, but also by a myriad of R&D incentives, some unique in Europe. When investing in Flemish Brabant, you may be eligible for the:
- Patent income deduction
- Investment deduction for R&D related investments and patents
- R&D tax credit
- Partial withholding tax exemption for researchers
- Tax allowance for additional employees
- Innovation premium
- Expatriate tax status in R&D
- Transfer Pricing rulings
- Accelerated depreciation
- Tax exoneration for regional grants
Taxpayers can ask the Federal Public Service of Finance for a preliminary and binding decision valid for a five-year period with regard to the application of tax regulations. Foreign companies that plan on investing in Belgium are also eligible.