On 11 April 2019, the new percentages for the investment deduction, applicable for assessment year 2020 (financial years ending between 31 December 2019 and 30 December 2020, both dates inclusive), were published in the Belgian Official Gazette. In order to apply for the investment deduction, the taxpayer needs to comply with certain conditions and formalities.
Here is a summary of the percentages for assessment year 2020.
One-shot investment deduction
Private individuals
- Investments in security: 20,5%
- Other qualifying investments in fixed assets acquired or created between 1 January 2018 and 31 December 2019: 20% (**)
All companies
- Investments in patents (*), environmentally friendly R&D investments (*), energy-saving investments and investments in smoke evacuation or ventilation systems in the hotel and catering industry: 13,5% (20% for fixed assets acquired or created between 1 January 2018 and 31 December 2019 (**))
- Investments encouraging the reuse of packaging materials for beverages and industrial products: 3%
SMEs
- Digital investments: 13,5% (20% for fixed assets acquired or created between 1 January 2018 and 31 December 2019 (**))
- Investments in security: 20,5%
- Qualifying investments other than the above acquired or created between 1 January 2018 and 31 December 2019 (**): 20%
Companies having income only from maritime transport
- Investments in ships: 30%
Spread investment deduction
Private individuals
- Environmentally-friendly R&D investments: 20,5% on the depreciations (regardless of number of employees)
- Other qualifying investments: 10,5% on the depreciations (if the individual employs less than 20 employees on the first day of the taxable period linked to assessment year 2020)
Companies
- 20,5% on the deprecations on environmentally-friendly R&D investments (*)
(*) Companies that (irrevocably) opted for the tax credit (i.e. the investment deduction multiplied by the statutory corporate income tax rate) can longer claim the investment deduction for patents and environmentally friendly R&D investments.
(**) Only applicable if the company irrevocably forsakes the notional interest deduction.
