Innovation Income Deduction

How can I benefit from it?

Find out now!
Leyton

Unlock new opportunities for your business

Spotlight on Corporate Income Tax

The ‘Innovation Income Deduction’ (IID) replaces the previous ‘Patent Income Deduction’ (PID) and offers a broader scope. It took effect retrospectively from 1 July 2016.
This deduction allows a tax deduction up to 85% of the net income from innovation in corporate income tax or non-resident income tax (companies). Whereas the PID was limited to patents, IID also considers other intellectual property (IP) rights, such as copyright-protected software and plant breeders’ rights. Additionally, under certain conditions, the sale of IP or services based on IP could be considered income for the purposes of IID.

Copyright-Protected Software

Software, including derivatives or adaptations, is considered to be copyright-protected if it results from a research and development project or program within the meaning of art. 275 ITC (Income Tax Code), in particular the company withholding tax subsidy for knowledge workers.
Copyright-protected software that has generated income before 1 July 2016 is excluded from the deduction for innovation income.

Copyright-Protected Software

Software, including derivatives or adaptations, is considered to be copyright-protected if it results from a research and development project or program within the meaning of art. 275 ITC (Income Tax Code), in particular the company withholding tax subsidy for knowledge workers.
Copyright-protected software that has generated income before 1 July 2016 is excluded from the deduction for innovation income.

How we can help

To successfully claim the tax incentive for innovation income, taxpayers should rethink the way they are organising their intellectual property activities. Leyton can assist you in identifying eligible R&D activities as well as in preparing exhaustive supporting documentation throughout the whole process that includes document preparation, submission, and control.

How we can help

To successfully claim the tax incentive for innovation income, taxpayers should rethink the way they are organising their intellectual property activities. Leyton can assist you in identifying eligible R&D activities as well as in preparing exhaustive supporting documentation throughout the whole process that includes document preparation, submission, and control.

Three cornerstones to assist tax payers in this particular domain:

  • Analysing the potential corporate tax advantage
  • Requesting advice from the Belgian Science Policy Office (BELSPO)
  • Requesting a tax ruling at the Belgian Tax Authorities

Your Results

The goal is to identify and optimise, in a very pragmatic approach, how your company can benefit from this tax deduction in a safe and secure manner. Leyton combines tax expertise with experienced scientists and engineer’s capabilities to ensure efficiency as well as effectiveness.

Your Results

The goal is to identify and optimise, in a very pragmatic approach, how your company can benefit from this tax deduction in a safe and secure manner. Leyton combines tax expertise with experienced scientists and engineer’s capabilities to ensure efficiency as well as effectiveness.

Our Innovation Income Deduction Team

Charlotte

Charlotte Verwee

Senior Tax Consultant – Master in Tax

Jasper Van Hirtum

Senior Innovation Consultant – PhD in Mathematics

Our Innovation Income Deduction Team

Charlotte

Charlotte Verwee

Senior Tax Consultant – Master in Tax

Jasper Van Hirtum

Senior Innovation Consultant – PhD in Mathematics

Leyton in Figures

12

Countries

20 +

Years of Experience

24000 +

Clients

Leyton in Figures

12

Countries

20 +

Years of Experience

24000 +

Clients

Get in touch with our Innovation Incentives Specialists

Contact us

Get in touch with our Innovation Incentives Specialists

Contact us