Investment Deduction/Credit TY25 rate changes
Grants, Credits & Incentives Alert
Owing to lower inflation rates in 2023, the rate of the increased investment deduction applicable to eligible capital investments by companies during financial year 2024 (tax year 2025) will decrease by 5%.
Eligible expenditures include mainly energy-saving investments, environmentally friendly investments in research and development (R&D), investments in security, and expenditures on patents.The table below shows the applicable rates of the deduction for tax years 2024 and 2025.
|
One-time deduction |
Tax year 2024 (%) |
Tax year 2025 (%) |
|
Energy-saving investments |
20.5 |
15.5 |
|
Environmentally friendly investments in R&D |
20.5 |
15.5 |
|
Patents |
20.5 |
15.5 |
|
Investments in occupational classroom security |
27.5 |
22.5 |
|
Investments in commercial vehicle security |
27.5 |
22.5 |
|
Investments in smoke extraction and ventilation systems (hospitality industry) |
20.5 |
15.5 |
|
Investments in digital fixed assets (billing, payment, and security systems) |
20.5 |
15.5 |
|
Investments in carbon emission-free trucks and the associated refueling infrastructure for blue, green, or turquoise hydrogen, and electric charging infrastructure |
42 |
37 |
|
Other investments |
8 |
3 |
|
Spread deduction |
|
|
|
For taxpayers with less than 20 employees |
17.5 |
12.5 |
|
Environmentally friendly investments in R&D and forward-looking technologies |
27.5 |
22.5 |
As these rates are still 2% higher than those from tax year 2024, the deductions or potentially tax credit available for tax year 2025 may influence the choice between a one-time deduction or a spread deduction on new investments.
The calculation of rates related to the application of Investment Deduction/Credit regimes will be then ruled by the recently approved new bill (dd. 29.05.2023), which will be of application for eligible capital investments realized by companies as of 2025.
Deloitte Belgium is able to assist companies with the process of obtaining the relevant tax deductions or credits, including reviewing whether investments in 2024 qualify and also if some company’s products may qualify for the benefit of its clients.
