Winnovation: How fiscal optimizations can help you increase your return on investment on R&D

Optimising your activities in Belgium is a part of your daily operations as a business owner or manager in a SME. While doing so, you’re also considering developing new products or looking for new ways to offer your services to your clients. Foreign companies may not be aware, but this type of innovation you are considering as part of your normal day-to-day business, may be eligible for Research and Development tax incentives.

Start by asking yourself these questions:

R&DAre you employing researchers? Then you may be eligible for an exemption of 80 % on payroll taxes for these employees.

Are you investing in infrastructure, equipment, machinery,… to realise your innovation or optimisation. Then don’t forget these types of investments may be eligible for an investment deduction or tax credit.

Did you protect your innovative solution or new product with a patent? Then keep in mind certain revenues resulting from commercializing your patent or the products based on that patent may be exempt for 80% from corporate income tax.

These incentives are linked to several conditions. You also need to comply with a number of formalities in order to benefit.

Don’t start your business in Belgium without good advice from a tax advisor like Grant Thornton. Advisers help you to determine whether or not your activities qualify for these tax benefits in Belgium. They help local and foreign companies with the application procedures and give advice if further optimisation is available.