Business case : Increased R&D returns and investment deduction

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February 28, 2024

Navigating Belgium’s dynamic innovation and R&D tax landscape presents a unique challenge for businesses. Amidst this complexity, many overlook a valuable opportunity: the Enhanced Investment Deduction (EID). Unveiling its significance can benefit companies seeking financial support for their innovative ventures. Delve into this business case for a comprehensive understanding of it.

Seizing current fiscal opportunities

The fiscal year 2023 remains open for submissions, with the window extending until the end of March. This window is particularly auspicious due to the significant inflation rates of 2023, expected to taper in 2024.

An overview of the Enhanced Investment Deduction:

The EID provides supplementary depreciation on specific investment categories. Eligible investments span patents, environmentally friendly R&D, energy-saving measures, zero-emission vehicles, hydrogen infrastructure, Horeca air purification systems, and digital payment solutions.

Targeting investments and associated assets, this deduction complements existing tax exemptions as the exemption from payment of withholding tax on wages for researchers and innovation income deductions.

Concrete example of the Enhanced Investment Deduction:

Consider a company acquiring a new production line incorporating patented R&D technology, enhancing energy efficiency. This acquisition, inclusive of R&D and patent acquisitions, qualifies for the Enhanced Deduction, contributing to energy-saving endeavors.

Focus on R&D Investment:

For instance, a company accumulating €500,000 in R&D Acquisition expenses in 2023 faces two options:


All at once amortization

The total deduction/tax credit is €102,500, this option yields net savings of €25,625, equivalent to 5.13% of the investment.

-> Net savings of €25,625, equivalent to 5.13% of the investment.


Spread amortization over 5 linear years:

The total deduction/tax credit is €27,500 annually, reaching €137,500 (5 x 27.500 €) over five years.

-> Annual net savings of €6,875 and a total of €34,375 over five years, representing 6.88% of the investment.

Limited-Time Opportunity in 2023:

Assets acquired or constituted in 2023 are eligible for an Enhanced Investment Deduction of up to 13.5%, compared to the standard 8%. This equates to a net savings of 5.125% on capitalized values. Environmentally conscious R&D investments enjoy an even higher deduction of 27.5%, leading to a net savings of 6.875% when linearly applied over amortizations.

Submission deadline:

To leverage this deduction, companies must submit a certification request to the relevant regional authority by March 31, 2024, for assets acquired or constituted in 2023.

Act now to optimize tax returns:

If your company invested in eligible themes in 2023, capitalize on the deduction now. If not, reconsider the activation of development costs, leveraging the Enhanced Deduction and other benefits. Ayming’s consulting engineers specialize in identifying R&D-related investments and enhancing your investment tax strategy.

Don’t miss out on optimizing your tax returns—reach out to our experts today!




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