Deadline extended for applying for certificate for thematic investment deduction

On 12 August 2025, a royal decree (Dutch | French) was published regarding the one-time extension of the application period to obtain a certificate of entitlement to the Belgian increased thematic investment deduction to 12 months after the closing of the taxable period or financial year. The 12-month period may never extend beyond 30 June 2026, unless the period would otherwise end less than three months before 30 June 2026. The increased thematic deduction is intended for investments aligned with the sustainable transition, with deduction rates up to 40%.

Delay in the practical rollout of the application process

Given the lengthy process of the formation of the new government and the resulting delay in the practical rollout of the new application system, there was uncertainty regarding applications for the investment deduction. Consequently, legal certainty was compromised for entrepreneurs wishing to make investment decisions in projects potentially eligible for the thematic investment deduction.

Ongoing uncertainty for companies with non-calendar financial years

Although the royal decree gives companies more time for certificate requests, there is still uncertainty for companies with a non-calendar financial year who have invested in potentially qualifying investments in 2025. As it is still not possible to submit certificate requests for the thematic deduction, and the practical guidelines and templates have not yet been published, these companies can only rely on the lists of investments eligible for the deduction published to date to complete their corporate tax returns for the financial year closing in calendar year 2025. The Flemish Agency for Innovation and Entrepreneurship (VLAIO) and the Flemish Energy and Climate Agency (VEKA) have published statements on their websites regarding their interpretation of the draft law; however, they clarify that the practical guidelines can only be completed once the Federal Public Service Finance and the regions have finalised the interpretative notes for the thematic lists.

Potential benefits of the thematic investment deduction

This tax measure has the potential to be a valuable tool for companies undertaking a green transition and prioritising sustainable investments. Once the administrative guidelines are finalised and clarified, businesses will be better equipped to confidently apply for the increased thematic investment deduction. This will not only support their financial planning but also reinforce their commitment to energy efficiency, zero-emission vehicles, and broader climate goals.