Belgium limits R&D tax credit

Belgian tax law offers companies a wide range of incentives for conducting research and development (R&D) activities and the exploitation of intellectual property (IP). For the first time, the Belgian Federal Parliament has enacted a limitation on the combined use of the Belgian R&D tax credit and the payroll withholding tax exemption for R&D employees.

As from FY22, the R&D tax credit limitation may result in a higher tax cash-out or a lower DTA recognition.

A similar limitation r…