What are the tax benefits?

Get familiar with the tax system and the various reductions and exemptions:

  • standard 25% corporate tax rate (20% for SMEs). The actual corporate tax rate may be lower as a result of the following reductions and exemptions:
  • deduction for final, taxed income (dividends received are 100% exempted, subject to conditions)
  • ¬†interest can be deducted if you take out a loan to acquire the participation¬†
  • investment deduction for investments in new assets
  • an exemption of 85% of net income for innovation income from patents, copyrighted software, plant breeders' rights ...
  • the carry-over of tax losses to subsequent years unlimited in time
  • a federal tax exemption for a number of subsidies granted by the Regions

Other advantages:

  • reverse charge of VAT on imported goods: you do not have to advance the VAT and you do not have to pay a deposit
  • reduction in labour costs through reductions and exemptions from withholding tax

More information on the website of the Federal Public Service Finance Fiscal Department for Foreign Investments