Innovation Deduction
The new innovation deduction (or deduction for innovation income) is the successor to the patent deduction (or IP box). It exempts 85% of the net income arising from a number of intellectual property rights (e.g. a patent or copyright-protected software) from corporate tax.
Venture Campus helps you with every step
The deduction cannot simply be applied; it requires a thorough preliminary study and careful documentation. Venture Campus helps you with every step you need to take to apply the innovation deduction. The first step is a feasibility study to see whether the deduction applies to your organisation. We help you build the file needed for a tax audit and can also assist you in applying for a tax ruling.
Applies to the sale of innovative products and services
Do you sell innovative products and/or services? Then the innovation deduction may well apply to the net income arising from their sale.
The innovation deduction cannot be applied lightly
There is a lot to look at with the innovation deduction. Do you hold the right patents or copyright-protected software? Do you have a correct time-registration system for your developers? Are your general terms and conditions well defined? Is the transfer of the right of use to your client properly arranged? Are your R&D activities registered (and approved) with BELSPO? …
We go through this with you. Get in touch and discover the possibilities.
Get in touch →Low tax rate
3.75% instead of 25% on net income from intellectual property rights.
Strict documentation duty
Venture Campus takes care of this, of course.
Major benefit
Tax benefit for medium-sized companies of +100,000 euros per year.
Approved by the EU and compliant with OECD guidelines
It is a durable measure based on a stable legal framework and an established ruling practice. There is therefore no risk of prohibited state aid.
What our clients say
Venture Campus makes sure we get a deduction every year on our income streams arising from an innovative application.
Focus on what matters, we take care of the rest
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Frequently asked questions
What is the Innovation Deduction and how large is the tax benefit?+
The Innovation Deduction (deduction for innovation income) is the successor to the patent deduction. Net income from certain intellectual-property rights is 85% exempt from corporate tax. In practice that means an effective rate of about 3.75% instead of 25% on that income. For medium-sized companies the benefit quickly exceeds €100,000 per year.
Which intellectual property qualifies for the Innovation Deduction?+
Among others: patents and supplementary protection certificates, copyright-protected software, plant breeders' rights, orphan drugs, and certain data and market exclusivity. It concerns the net income arising from those rights — for example from selling innovative products or services, licences, or embedded technology.
Does software qualify for the Innovation Deduction?+
Yes. Copyright-protected software arising from a research or development project is expressly eligible — a key difference from the former patent deduction, which did not allow it. Strict conditions apply, though: correct time registration for your developers, a properly arranged transfer of usage rights, and registration of your R&D with BELSPO. We work through those conditions with you in advance.
What is the difference between the Innovation Deduction and the former patent deduction?+
The Innovation Deduction replaced the patent deduction and is broader on two points: the scope is wider (copyright-protected software is now included) and the percentage rose to 85% exemption. At the same time the documentation obligation became stricter, in line with EU and OECD guidelines (the "nexus" approach, which links the deduction to your own R&D effort).
Can I combine the Innovation Deduction with other support such as payroll tax relief?+
Yes. The Innovation Deduction works on the income side (less tax on IP income), while payroll tax relief and the VLAIO R&D grant work on the cost side. They are therefore complementary and reinforce each other within a single innovation track. We map out which combination yields the most for your company.