Law introducing changes to investment deduction regime to support “green” transition published

On 29 May 2024, the law introducing significant amendments to Belgium’s investment deduction regime was published in the official gazette (Dutch | French).

The reform extends the list of investments qualifying for the investment deduction related to energy saving technologies (former article 69, §1, 2°, c of the Income Tax Code 1992 (ITC)) and substantially increases the related deduction rates to encourage investments in “green” technologies and related software. For more information, see our Tax Alert of 25 March 2024.

It will be crucial that Belgium’s next federal and regional governments proceed with the formal validation of these thematic lists before the end of 2024 to ensure that the incentive can be correctly applied to investments made as from 1 January 2025.Regarding investments promoting the research and development of innovative products and technologies (former article 69, §1, 2°, a-b of the ITC), the modifications introduced by this reform are less significant and are primarily aimed at defining fixed deduction rates of 13.5% (one-time investment deduction) and 20.5% (spread application).

How Deloitte Belgium can help

Deloitte Belgium can support you in:

• Defining a tailor-made strategy to benefit from the incentives available for investments promoting “green” technologies and the research and development of innovative products and technologies;

• Implementing the (reformed) investment deduction;

• Reviewing eligible investments once the relevant lists are published; and

• Obtaining the required certificates.