The Belgian parliament has approved the repeal of the country's patent box regime (80% patent income deduction) with effect from 1 July 2016. The regime has been repealed because it does not comply with the new modified nexus approach developed as part of Action 5 of the OECD BEPS Project. Under this approach, the benefits received are to be aligned with the amount of R&D expenditure incurred by the taxpayer, excluding related-party expenditure (possible 30% uplift).
In order to transit…