Key takeaways
- The standard corporate income tax rate is 25%, with a reduced rate of 20% on the first 100.000 € for small companies.
- The main incentives: investment deduction, tax shelter and innovation income deduction.
- Regional aids in the form of vouchers complement the federal scheme.
- The rates change often: name the right scheme, but confirm the figures with the FPS Finance.
Belgium offers several tax incentives for a company, often little known, that lighten the tax burden or support investment. You still have to know them and activate them at the right moment. Beware, however: the rates and ceilings of these schemes change frequently with reforms. The key is therefore to identify the right mechanism, then check its up-to-date conditions. This article draws the picture of the main incentives, from the corporate income tax rate to regional aids.
The corporate income tax rate
The starting point of a company's taxation is the corporate income tax (ISoc) rate.
standard rate
corporate income tax since the 2021 tax year
reduced rate
on the first 100.000 € for small companies
reduced-rate bracket
under conditions, including a minimum director's remuneration
The reduced rate of 20% on the first 100.000 € of profit is not automatic: it requires meeting several conditions, notably qualifying as a small company and paying a minimum remuneration to at least one director. Our article on corporate income tax in Belgium details these rules.
The main tax incentives
Beyond the rate, several schemes reduce the taxable base or exempt certain amounts. They are activated under conditions.
The incentives to know
Investment deduction
A tax benefit on new investments in depreciable assets; the regime has been reformed and its rates depend on the type of investment.
Tax shelter
Exemption for investment in audiovisual production, the performing arts and young companies (start-up and scale-up).
Innovation income deduction
An exemption of a large part of the income from qualifying intellectual property, such as patents.
Notional interest deduction: abolished
The deduction for risk capital has been abolished for recent years; only any earlier carry-forward amounts remain.
These schemes obey precise conditions and rates that evolve. The innovation income deduction, for example, exempts a significant part of qualifying intellectual-property income, which makes it a strong lever for innovative companies. The start-up tax shelter is detailed in our article on creating a startup in Belgium.
Regional aids
Alongside the federal incentives, the Regions support companies, often in the form of vouchers that cover part of certain costs.
The regional schemes
Wallonia: chèques-entreprises and training vouchers
Coverage of part of the cost of advice, training or transition, under conditions.
Flanders: SME portfolio (KMO-portefeuille)
Subsidy of part of the training and advice costs for SMEs.
Brussels: regional schemes
Grants and aids specific to the Brussels-Capital Region depending on the project.
The coverage rates and the conditions vary from one Region to another and evolve. As for the federal incentives, check the terms in force with your Region before committing to any expense.
Structure your company to start well
Legal form, registered office and incorporation: Monsiegesocial sets up your company, the base on which the tax incentives apply.
Going further
- Corporate income tax in Belgium, the framework of the rate and the reduced rate.
- Creating a startup in Belgium, for the start-up tax shelter and financing.
- Creating a company in Belgium: the steps, the structure that opens access to the incentives.
