On 27 April 2018, the new percentages for investment deduction, applicable to assessment year 2019, were published in the Belgian Official Gazette. In order to apply the investment deduction, the taxpayer needs to comply with certain conditions and formalities.
Here is a summary of the percentages for assessment year 2019:
1. One-shot investment deduction
Private individuals:
- Digital investments (*) and investments in patents, environmentally-friendly investments for research and development, energy-saving investments, and investments in smoke evacuation or ventilation systems in the hotel and catering industry:
• 13.5% for fixed assets acquired or created until 31 December 2017
• 20% for fixed assets acquired or created between 1 January 2018 and 31 December 2019
- Investments in security: 20.5%
- Other qualifying investments:
• 8% for fixed assets acquired or created until 31 December 2017
• 20% for fixed assets acquired or created between 1 January 2018 and 31 December 2019
All companies:
- Investments in patents (**), environmentally-friendly investments for research and development (**), energy-saving investments, and investments in smoke evacuation or ventilation systems in the hotel and catering industry: 13.5%
- Investments encouraging the reuse of packaging materials for beverages and industrial products: 3%
SMEs:
- Digital investments and investments in patents (**), environmentally-friendly investments for research and development (**), energy-saving investments, and investments in smoke evacuation or ventilation systems in the hotel and catering industry:
• 13.5% for fixed assets acquired or created until 31 December 2017
• 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%
- Investments in security: 20.5%
- Other qualifying investments (***):
• 8% for fixed assets acquired or created until 31 December 2017
• 20% for fixed assets acquired or created between 1 January 2018 and 31 December 2019
Companies receiving only income from shipping:
- Investments in ships: 30%
2. Spread investment deduction
Private individuals:
- 10.5% for qualifying private individuals who opt for spread investment deduction according to the duration of the depreciation period (only applicable to taxpayers who employ less than 20 workers on the first day of the taxable period linked to assessment year 2019 and during which the assets were acquired or created)
Environmentally-friendly investments for research and development:
- 20.5% (qualifying private individuals and companies)
(*) Only applicable to private individuals who (for assessment year 2019) meet the definition of article 15, §1 to §6 of the Belgian Companies Code.
(**) For these investments, it is also possible to claim R&D tax credit. The R&D tax credit is an alternative way of using the R&D investment deduction (R&D tax credit = R&D investment deduction multiplied by statutory corporate income tax rate).
(***) Cannot be combined with notional interest deduction.
