Notional interest deduction : investments in Belgian risk capital rewarded

With the Law dated 22 June 2005, the Belgian legislator introduced a tax deduction for risk capital, the so-called "notional interest deduction". Belgian companies and Belgian branches of foreign companies will be allowed to deduct from their tax base a fictitious or notional amount of interest based on their adjusted equity capital. This article is a thorough treatise about this creative and innovative measure.