2022 investment deduction: what percentage are you entitled to?

July 2022 – At the end of 2020, the legislature increased the standard investment deduction rate from 8% to 25% for capital assets acquired or established between March 12, 2020 and December 31, 2022. This makes the standard rate higher than the "enhanced rate". What is the rate for investments that relate to the 2023 tax year?

In order to give the economy a boost after the pandemic, the Government has decided to increase the standard rate of the investment allowance to 25% for capital assets acquired or created between March 12, 2020 and December 31, 2022. There is an increased investment deduction for, among other things, digital and security investments, but this increased rate is currently lower than the standard rate. However, the tax authorities allow the standard rate to be applied to these "special investments" that benefit from a "special rate".

The following rates are therefore applicable for the tax year 2023.

Single deduction for individuals

For investments that are related to the 2023 tax year and that were acquired or established until December 31, 2022:

• patents, investments in environmentally friendly research and development, energy-saving investments, air extraction or purification systems in HORECA establishments: 25%

• digital investments provided that the natural person is considered an SME in the sense of the CSA: 25%

• investments in security: 25%

• investments in carbon-free trucks, hydrogen refueling infrastructures, and electric recharging infrastructures for carbon-free trucks, acquired or constituted as of January 1, 2022: 35%

• Other investments: 25%.

For investments that relate to the 2023 tax year and were acquired or constituted on or after January 1, 2023:

• patents, investments in environmentally friendly research and development, energy-saving investments, air extraction or purification systems in HORECA establishments: 13,5%

• digital investments provided that the natural person is considered an SME in the sense of the CSA: 13,5%

• investments in security: 20,5%

• investments in carbon-free trucks, hydrogen refueling infrastructures, and electric recharging infrastructures for carbon-free trucks, acquired or constituted as of January 1, 2022: 35%

• other investments: 8%.

Single deduction for corporations

Companies are entitled - regardless of their size - to the following investment deductions:

• patents, investments in environmentally friendly research and development, energy-saving investments, air extraction or purification systems in catering establishments: 13,5%

• investments in carbon-free trucks, hydrogen refueling infrastructure, and electric recharging infrastructure for carbon-free trucks, acquired or built as of January 1, 2022: 35%

• Investments that encourage the reuse of beverage and industrial containers: 3%.

Companies that have elected for the research and development tax credit cannot combine it with the patent investment deduction or the environmentally friendly research and development investment deduction. The company must therefore choose one or the other regime.

Single deduction for SMEs

Companies that are considered as "small companies" according to the criteria of the Companies and Associations Code (art. 15, §§1-6 CSA) benefit from the following deductions:

For investments that relate to the 2023 tax year and that were acquired or established until December 31, 2022:

• patents, investments in environmentally friendly research and development, energy-saving investments, air extraction or purification systems in HORECA establishments: 25%

• digital investments: 25%

• investments in security: 25%

• investments in carbon-free trucks, hydrogen refueling infrastructure, and electric charging infrastructure for carbon-free trucks, acquired or built as from January 1, 2022: 35%

• other investments: 25%.

For investments that relate to the 2023 tax year and were acquired or constituted on or after January 1, 2023:

• patents, investments for environmentally friendly research and development, energy-saving investments, air extraction or purification systems in HORECA establishments: 13,5%

• digital investments: 13,5%

• investments in security: 20,5%

• investments in carbon-free trucks, hydrogen refueling infrastructure, and electric charging infrastructure for carbon-free trucks, acquired or built as of January 1, 2022: 35%

• other investments: 8%.

One-time deduction for companies collecting profits exclusively from maritime navigation

These companies benefit from an investment deduction of 30% on investments in ships.

Staggered deduction

If, on the first day of the taxable period relating to the 2023 tax year (January 1, 2022 if you keep your accounts by calendar year), you employ fewer than 20 workers, you may, if you wish, spread the investment deduction for investments in that taxable period over the depreciation period of those fixed assets.

In this case, the investment deduction for these assets is equal to 10,5% of the depreciation allowed for each taxable period of that period.

The staggered deduction even amounts to 20,5% of the depreciation on environmentally friendly research and development investments that were acquired or established during the taxable period.

This applies to both individuals and companies.

These rates, therefore, remain the same as in previous years.

Application for certificates

Depending on the location of the investment, a certificate for investments in environmentally friendly research and development can be obtained from

• the Flemish Region: Vlaamse Overheid, Departement Omgeving - Afdeling Partnerschappen met besturen en maatschappij, Bâtiment Comte de Ferraris, Boulevard du Roi Albert II 20 boîte 8, 1000 Brussels, tel. 0492 22 58 11, e-mail: attest-OenO.omgeving@vlaanderen.
  www.omgeving.vlaanderen.be

• the Walloon Region: Service Public de Wallonie, Direction générale opérationnelle Agriculture, Ressources naturelles et Environnement, Chaussée de Louvain 14, 5000 Namur, tel. 081/64.94.70 or 081/64.96.97, e-mail: jonas.nunesdecarvalho@spw.wallonie.be www.environnement.wallonie.be

• l Brussels Capital Region: Brussels Environment, Tour & Taxis site, Avenue du Port 86/C3000, 1000 Brussels, tel. 02/775.75.75, www.environnement.brussels

A certificate for energy-saving investments can be obtained, depending on the location of the investment, from

• the Flemish Region: Vlaamse Overheid, Vlaams Energie- en Klimaatagentschap, Bâtiment Comte de Ferraris, Boulevard du Roi Albert II 20 boîte 17, 1000 Brussels, tel. 02/553.46.00, e-mail: investeringsaftrek.veka@vlaanderen.be, www.energiesparen.be.

• The Walloon Region: (new!)

• Requests for certificates from the regional energy administration will now be made exclusively online by completing the form available on the website: https://energie.wallonie.be/fr/deduction-fiscale-pour-investissements.html?IDC=6952

• Brussels Capital Region: Brussels Environment, Tour & Taxis site, Avenue du Port 86/C3000, 1000 Brussels, tel. 02/775.75.75, www.environnement.brussels

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