Partial Withholding Tax Exemption for R&D
WHAT ARE RESEARCH & DEVELOPMENT TAX CREDITS AND DO I QUALIFY?
The challenge of innovation plays a key role in the growth of a modern, knowledge-based economy. The Belgian Government supports Research and Development (R&D) and innovation at both federal and regional levels using R&D tax incentives to support these activities.
PARTIAL EXEMPTION OF WITHHOLDING TAX
Companies can benefit from a partial exemption of 80% of withholding tax paid on wages of scientific researchers.
The definition of R&D is in line with the OECD Frascati Manual and considers fundamental research, industrial research and experimental development. Qualifying companies also include companies that have partnership agreements with specific European institutions and Young Innovative Companies.
The implementation of the withholding tax exemption requires pre-approval from the Federal Science Department. New R&D projects have to be registered by a notification procedure.
OUR ADDED VALUE
Leyton assists you in identifying eligible R&D activities and in preparing exhaustive supporting documentation through the whole process from scoping through document preparation, submission and controls.