The regime allows Belgian companies to deduct 80% of their qualifying patent income from their taxable income leading to a reduction in their maximum corporate tax rate for this income stream to 6.8%, i.e. 20% of the Belgian statutory corporate tax rate of 33.99%.The patent income deduction applies to any licensing income (upfront payments, milestones and royalties) and to the portion of the sales price of a product sold directly that is considered to relate to the product's patents (embedded royalty). Under the legislation, depreciation of purchased patents and royalties due on the in-licensed patents should be deducted from the qualifying patent income before applying the 80% deduction.
ThromboGenics To Benefit From Positive Ruling Regarding Patent Income Deduction
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