• INVESTMENT DEDUCTION - NEW RATES ASSESSMENT YEAR 2014

INVESTMENT DEDUCTION - NEW RATES ASSESSMENT YEAR 2014

10 March 2013

The new percentages for investment deduction that apply to the assessment year 2014 (income year 2013) have been published in the Belgian Official Gazette.

Investments that meet the legal conditions give the right to a tax exemption on part of the profits and benefits, which equals a certain percentage of the acquisition or investment value. The following percentages apply to investments made during the assessment year 2014.

Individuals

 

 

  • Patents, environmental friendly investments for research and development, energy efficient investments, smoke exhaust or aeration system (Hotel & catering industry), charging station for electrical vehicles

 

 

14,5%

  • Investments in security

 

21,5%

  • Other investments

 

4,5%

Companies

 

 

1. All companies

 

 

  • Patents, environment friendly investments for research and development, energy efficient investments, smoke exhaust or aeration system (Hotel & catering industry), charging station for electrical vehicles

 

14,5%

  • Investments encouraging the reuse of packaging materials for drinks and industrial products

 

3%

2. Small companies

 

 

  • Safety investments

 

21,5%

3. Companies only receiving profits from navigation

 

 

  • Investments in seagoing ships

 

30%

 

In principle the investment deduction is immediately applied. Some taxable persons might opt for a spread deduction according to the duration of the depreciation period. Certain investments give right to a unique special investment deduction.

It is possible to benefit from the spread investment deduction at a rate of 11,5% of the adopted depreciation for each taxable period, if the necessary requirements are met. The spread investment deduction concerning the depreciation of obtained or established environmental friendly investments for research and development determined at 21,5% for assessment year 2014.

Please note that the investment deduction for patents and research and development of new technology beneficial to the environment cannot be cumulated with a tax credit for research and development.

For more details in this respect, please contact your regular BDO contact person.