“Companies that invest in their future deserve our support,” says Minister of Finance Vincent Van Peteghem. — © BELGA
The De Croo government reached an agreement last Friday on the greening of the investment deduction for companies, De Tijd and De Standaard reported on Tuesday. The basic deduction for the self-employed and SMEs will increase from 8 to 10 percent, among other things.
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“Companies that invest in their future and thus guarantee jobs and growth deserve our support,” said Minister of Finance Vincent Van Peteghem (CD&V).
The federal government wants to support companies in the most up-to-date way in making their processes more sustainable. The lists of green investments that are eligible for deduction will therefore be updated every three years in the future.
The existing rules are being changed in three areas.
Firstly, the basic deduction for sole proprietorships and SMEs, which applies to investments in items such as buildings, machines or means of transport, increases to 10 percent. The basic deduction can be increased by a further 10 percent for digital investments in the areas of invoicing, customer relationship management, e-commerce and cyber security.
Secondly, there will be a new thematic deduction for green investments of 40 percent for sole traders and SMEs, and of 30 percent for larger companies. Four types of investments are eligible: efficient energy consumption and renewable energy, emission-free means of transport such as electric vans and trucks, other environmentally friendly investments such as more efficient water systems and green digital investments, such as software that monitors energy consumption.
Thirdly, the existing deduction for investments in research and development and in patents will be renamed a technology deduction. The difference with the past is that there are now fixed percentages that no longer move with inflation. A rate of 13.5 percent applies to the one-off investment deduction for patents and environmentally friendly investments in research and development. If the investment deduction for environmentally friendly investments in research and development is spread over several years, the rate is 20.5 percent.
Unizo: “Simpler things”
“The system is becoming a lot simpler,” responds Unizo managing director Danny Van Assche. The self-employed organization speaks of a good compromise between legal certainty and innovation.
The new scheme will cost the budget an additional 100 million euros and will come into effect from January 1, 2025.