In the 200-page government agreement, a significant number of pages focus on measures to ensure an innovating healthcare. Many of the measures taken are particularly relevant for the health industry. The coalition agreement presented by the new federal government sets a promising stage for the pharmaceutical, biotech and more in general the health industry in Belgium. Clearly the government chooses for continuity and stability where existing tax provisions are unchanged, providing a stable tax and legal framework. But there are also some interesting changes included. With a clear focus on collaboration between stakeholders, fostering innovation and assuring technological progress, the aim is clearly set at maintaining Belgium’s leading position in healthcare.
Belgium remains an important market for the health industry and the government takes a number of measures to ensure the sustainability of the health industry.
The coalition agreement focuses on three intertwined areas to maintain a solid position in the global health ecosystem. Below is an overview of the, in our view, most pertinent measures and ambitions set out in the coalition agreement:
- A stable, fiscal, support system
- Regulation and collaboration
- Protection of innovative ideas
A stable, fiscal, support system
A crucial factor in enhancing research, development, and innovation (R&D&I) is establishing a stable, efficient, and effective incentives landscape. Belgium already encourages R&D&I activities through cash grants and tax incentives. The De Wever I government has made a clear commitment to continue supporting R&D&I efforts. With the possibility to obtain the status of recognized research centre, companies will benefit from less burdensome reporting requirements when it comes to the application of the Innovation Income Deduction, the R&D investment deduction / tax credit and the partial wage withholding tax exemption for R&D.
Additionally, in response to the ongoing controversy surrounding positions taken by fiscal authorities during audits of applied R&D incentives — particularly concerning the partial wage withholding tax exemption for R&D — a covenant will be established between the federal administration responsible for R&D and the fiscal authorities. This agreement will clearly delineate responsibilities and cooperation methods between the relevant government bodies. Combined with improved communication between fiscal authorities and taxpayers, the newly installed government aims to streamline the entire incentives process and maximize legal certainty for taxpayers. Still in this regard, we also note enhancements the expat regime aimed at attracting international talent, the coalition agreement foresees the tax-free allowance to rise from 30% to 35%, an abolishment of the EUR 90,000 cap and a lowered minimum gross salary requirement towards EUR 70,000.
With these ambitions, Belgium emphasises its position as a stable and reliable location for the health industry to develop new, innovative products and market them on a sustainable basis.
Regulation and collaboration
The coalition agreement makes it clear that the government De Wever I is committed to the creation of a supportive regulatory framework that encourages innovation and brings together all relevant stakeholders while ensuring ethical standards and fostering progress in the pharma and biotech sectors.
Belgium is dedicated to maintaining its status as an attractive hub for clinical research. The government is implementing flexible regulations and fostering collaboration among relevant bodies to support this goal. A key initiative is the development of a national Clinical Trial Network, which is expected to enhance research capabilities and streamline the process of conducting clinical trials. This network will facilitate collaboration between researchers, healthcare providers, and industry stakeholders.
In addition to the national Clinical Trial Network, the government De Wever I will (re)organize a “Biopharma R&D forum”, gathering representatives of the pharmaceutical sector and the relevant, regional, government bodies in order enforce the attractiveness of clinical research in Belgium.
Protection of Innovative ideas
Recognizing the importance of protecting and stimulating innovation, the coalition agreement emphasizes a robust intellectual property policy. This policy is designed to safeguard the interests of innovators while encouraging the development of new technologies and treatments. With the creation of the national Clinical Trial Network and by providing a secure environment for intellectual property, Belgium aims to attract investment and foster a thriving ecosystem of research and development within the healthcare sector.
The federal government is paving the way for a collaborative and innovative way forward for the health industry, R&D and the broader healthcare industry in Belgium. The course is clearly set towards engagement from industry stakeholders, researchers, and policymakers to realize the full potential of these ambitions. The months to come will bring more clarity on how the new government will translate these welcome plans into practical policy and actions. To do so,
For more information and to explore how these changes may bring opportunities to your organization, please reach out to Pieter Deré, Pierre Demoulin, or your usual PwC contact.
