Investment deduction (2024)

Which is the deductible share?

Investments made during the taxable period linked to the assessment year 2021 (income of 2020) that meet the legal requirements are entitled to the following investment deductions:

1. All companies

Patents (***), investments in environmentally friendly research and development (***), energy-saving investments and air extraction or purification systems in horeca establishments: 20.5 %
Investments in carbon emission-free trucks and refuelling infrastructure for blue, green or turquoise hydrogen and electric charging infrastructure related to carbon emission-free trucks:
- 42 % if acquired or constituted from 01.01.2022 to 31.12.2023
- 36.5 % if acquired or constituted from 01.01.2024 to 31.12.2024
Investments encouraging the reuse of containers for beverages and industrial products:3 %

2. Companies referred to in 2, § 1, 5°, c)bis, of the Income Tax Code:

20.5 % for digital investments
27.5 % for investments in security
For investments other than those mentioned under B,1, B, 2 1st and 2nd points as well as B, 3:
- 25 % if acquired or constituted from 12.03.2020 to 31.12.2022
- 8 % if acquired or constituted since 01.01.2023
For investments referred to in B, 1, 1st point and B, 2, 1st point (**) (****):
- 25 % if acquired or constituted from 12.03.2020 to 31.12.2022

3. Companies collecting profits exclusively from maritime navigation

30 % for investments in ships

(*) Only applicable to natural persons who, for the assessment year 2024, meet mutatis mutandis the criteria of Article 1:24, §§ 1 to 6, of the Companies and Associations Code.
(**) The increased percentage referred to in Article 69, § 1, point1, 2°, of the Income Tax Code 92 is not applicable if the basic percentage referred to in Article 69, § 1, point 1, 1°, or in Article 201, § 1, point 1, 1°, of the Income Tax Code 92, is more favourable (Chambre, Doc.54/2864-001, p. 36).
(***) Companies which have irrevocably opted for the tax credit for research and development referred to in Article 289quater, of the Income Tax Code 92 may no longer benefit, as from the tax year during which this choice is made, from the deduction for investments for patents and for investments for environmentally friendly research and development.
(****) The application of the 25 % rate leads to the restriction referred to in Article 201, § 1, paragraph 3 (former paragraph 5, carry-over limited to the next taxable period), as well as the obligation to keep at the disposal of the administration, in this case, the general statement provided for all companies in Article 47, 2°, Royal Decree implementing the Income Tax Code 92.