The Belgian parliament has approved the new IP regime to replace the previous regime that was repealed effective 1 July 2016 due to its non-compliance with the modified nexus approach developed as part of BEPS Action 5. Under this approach, the availability of benefits under an IP regime requires a more direct connection with the activities of the taxpayer for IP development, while excluding costs with related parties.
The new IP regime provides an innovation deduction equal to 85% of the ne…