The Belgian patent income deduction

Journal
Warson, E.; Foriers, M.
Belgium
European Taxation 2008 (Volume 48), No. 2
FormatPDF
EUR
40
| USD
45
(VAT excl.)

The authors examine the provisions on the Belgian patent income deduction (PID) introduced in 2007. The PID reduces the effective tax burden on the patent-related income to a maximum of 6.8%, instead of the statutory rate of 33.99%. The effective tax rate is, therefore, substantially lower than the rates for patent income in most other European jurisdictions.