Innovation is often a key driver of growth and value creation. Belgium’s R&D wage withholding tax exemption provides a valuable incentive for companies employing researchers, engineers, software developers, scientists and other qualified professionals engaged in qualifying R&D activities. Subject to the applicable conditions, eligible employers may retain up to 80% of the wage withholding tax relating to qualifying employees, proportionate to the time they spend on eligible R&D activities, creating substantial and recurring employment-cost savings that can be reinvested in innovation, talent and business growth.

The regime is particularly relevant for innovative businesses across a wide range of sectors, including software, engineering, life sciences, MedTech and aerospace. Given the strict eligibility criteria and formalistic requirements, access to the incentive requires careful assessment and implementation.

Beyond assists companies throughout the entire process, from assessing whether R&D projects and employees meet the applicable eligibility requirements to preparing supporting documentation, managing Belspo registrations and supporting clients during tax audits or discussions with the tax authorities. Our assessment of R&D activities takes into account the applicable Belgian legal framework and the OECD Frascati criteria.