Investment deduction reform from 2025: key changes in a nutshell
February 2025 - A revamped investment deduction system has been in place in Belgium since 1 January 2025. This reform, established via a Royal Decree on 20 December 2024, aims to simplify the complex rules for entrepreneurs while giving them more legal certainty.
Under the new system, entrepreneurs must take into account three categories of deduction, each with a fixed percentage:
General deduction
10% basis for small enterprises and sole traders.
20% for digital investments such as accounting software, payment systems and e-commerce solutions.
Targeted thematic deduction
40% for natural persons and small businesses, 30% for large enterprises.
Applicable to investments in energy efficiency, carbon-free transport, eco-friendly solutions and supporting digital technologies.
Specific technology deduction
13.5% for one-off deduction, 20.5% for staggered deduction.
Conditions and formalities
As an entrepreneur, you must follow certain rules to qualify, including submitting reasoned attestations and attachment to your tax return. Get additional advice from your accountant or bookkeeper.
Thematic investment categories
Energy efficiency and renewable energy
Investments that promote energy efficiency or renewable energy are eligible. Think of insulation, heat and cold extraction and electrification of processes. Exceptions are investments with a short payback period (<3 years) or an excessively high internal rate of return (>13%).
Carbon emission-free transport
This includes electric bicycles, emission-free trucks and hydrogen charging infrastructure. Investments are limited to a maximum amount, such as €1 million for ‘active mobility’ and €500,000 for zero-emission vehicles.
Environmentally friendly investments
Focus is on waste reduction, circular economy and innovative recycling. These niche investments often have to meet strict technical criteria.
Excluded investments
Some investments are explicitly excluded from the basic investment deduction, such as:
Fossil fuels (distribution, storage, use).
Production of pesticides or harmful substances.
Waste treatment outside recycling of non-hazardous waste.
With this reform, the government is providing opportunities for businesses to invest more sustainably and reap tax benefits. As an entrepreneur, you would do well to inform yourself in time and take the necessary steps.
