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Law on fiscal reduction for patent revenues

Belgian companies subjected to the company tax may enjoy a fiscal reduction on patent revenues. With this fiscal measure the authorities want to support and stimulate the development, use and production on the basis of patents in and by Belgian companies.

The law stipulates that the reduction on patent revenues apply to national, European as well as international patents. The reduction of patent revenues also applies to additional protection certificates.
If the product/process in the country of production/application (Belgium or elsewhere) is protected by a patent/additional protection certificate, the revenues from the marketing of the product/process will qualify for a patent reduction, regardless of the fact of a patent/additional protection certificate has been obtained in the country of commercialisation. Following cases may occur:

  • Belgian company has obtained a patent in Belgian for a product that is being produced in Belgium: the revenues from marketing the product qualify for the patent reduction, regardless where the product is soled and regardless whether the product enjoys any kind of patent protection in the country where it is sold
  • Belgian company has obtained a patent for a product in a foreign country (for example France). The product is being produced in France by a third party on the basis of a licence granted by the Belgian company: royalties owed by the French production company to the Belgian company (patent owner) qualify for patent reduction
  • Belgian company has obtained a patent for a product in a foreign country (for example France). The Belgian company has the product made by a contractor in France for the account of the Belgian company (patent owner): the revenues from the subsequent commercialisation of these products by the Belgian company (patent owner) qualify for patent reduction, no matter where the product is sold and no matter whether the product is patented in the country in which it is sold

The reduction on patent revenues apply to products or processes developed by the company itself that are protected by a patent (or additional protection certificate), as well as to products/processes developed by third parties that enjoy this type of protection.

Read all about this law on the FAQ page of the FPS economy