Investment deduction/credit for qualifying investments increased for tax year 2024
Grants, Credits & Incentives Alert
Owing to high inflation rates in 2022, the rate of the increased investment deduction applicable to eligible capital investments by companies during financial year 2023 (tax year 2024) will increase by 7%.
Eligible expenditure includes mainly energy-saving investments, environmentally friendly investments in research and development (R&D), investments in security, and expenditure on patents.
The table below shows the applicable rates of the deduction for tax years 2023 and 2024.
One-time deduction |
Tax year 2023 (%) |
Tax year 2024 (%) |
|
Energy-saving investments |
13.5 |
20.5 |
|
Environmentally friendly investments in R&D |
13.5 |
20.5 |
|
Patents |
13.5 |
20.5 |
|
Investments in occupational classroom security |
20.5 |
27.5 |
|
Investments in commercial vehicle security |
20.5 |
27.5 |
|
Investments in smoke extraction and ventilation systems (hospitality industry) |
13.5 |
20.5 |
|
Investments in digital fixed assets (billing, payment, and security systems) |
13.5 |
20.5 |
|
Investments in carbon emission-free trucks and the associated refueling infrastructure for blue, green, or turquoise hydrogen, and electric charging infrastructure |
35 |
42 |
|
Other investments |
8 |
8 |
|
Spread deduction |
|
|
|
For taxpayers with less than 20 employees |
10.5 |
17.5 |
|
Environmentally friendly investments in R&D and forward-looking technologies |
20.5 |
27.5 |
The increased deductions or potentially tax credit available for the tax year 2024 may influence the choice between a one-time deduction or a spread deduction on new investments. As the inflation rate is now falling in Belgium it is not certain that similar rates of relief will be available in tax year 2025.
Deloitte Belgium is able to assist companies with the process of obtaining the relevant tax deductions or credits, including reviewing whether investments in 2023 qualify and also if some company’s products may qualify for the benefit of its clients.
