Investment deduction: tax administration confirms higher rates for 2024 

  • By Leyton Benelux
    • Oct 11, 2023
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You have probably heard of the “investment deduction” – a tax measure allowing companies to benefit from an additional deduction, on top of normal depreciation, for certain investments. More specifically, for environment-friendly R&D investments, energy-saving investments and investments relating in patents, the following rates have been applicable throughout the years: 

  • 13.5% for the one-off deduction; and 
  • 20.5% for the spread deduction (exclusively for environment-friendly R&D investments)

However, these rates are not fixed but need to be set annually according to consumer price index evolutions. Since consumers prices have risen sharply as of late, this has led to a significant increase in the deduction rates applicable for assessment year 2024 (investments made in 2023). As a consequence, investments that were booked into the accounts during 2023 will give rise to a higher investment deduction rate: 

  • 20.5% for a one-off deduction; and 
  • 27.5% for a spread deduction. 

Given the ordinary corporation tax rate of 25%, this means a net advantage of 5% to 7% can be gained! This exceptional situation is obviously good news for companies that have made and/or are planning to make significant investments in 2023. 

Should you have any questions regarding the investment deduction, our consultants will happily assist you.  


Leyton Benelux

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