Questions we

frequently get

We break projects down into clear phases, each with specific deliverables, timelines and milestones. There is no ambiguity—you’ll always know the status of our progress.

We strive for system uniformity across all entities and seek scalable solutions to ensure that every entity is efficiently covered.

We create training programs tailored to your team’s needs, which may include workshops, e-learning and on-the-job sessions to ensure compliance is effectively integrated.

We implement a phased approach with transparent hourly rates and clear deliverables, ensuring no surprises—just value.

We are true experts in the field. We take a no-nonsense, direct approach that challenges established brands. You're not just another client; you are our partner.

As niche experts, we are comfortable collaborating with a variety of industries. Our current projects are for clients in aerospace, automotive, e-commerce, R&D and consumer goods. If compliance is complex, we’re here to help.

We build upon your existing processes, leverage what is working well and target any gaps.

Yes, we provide ongoing support tailored to your needs, ranging from project-based assistance to embedded compliance experts.

Yes, we help businesses reduce expenses by identifying hidden cost savings, minimizing customs and excise burdens, and capitalizing on strategic opportunities to enhance market access.

We provide risk management services to reduce exposure associated with mergers and acquisitions, government audits, and operational procedures, ensuring that effective compliance measures are in place.

We assist businesses in managing excise taxes by providing technical analysis, reducing risk through centralized compliance processes, and developing unified tax strategies to mitigate the impact of excise duties on products such as alcohol, oil and tobacco.

Our approach includes conducting customs compliance reviews, supporting internal audit control processes, developing procedure manuals, providing staff training and offering due diligence services to ensure adherence to customs regulations.

Our Quick Scan is a rapid assessment designed to identify compliance gaps and opportunities within your trade processes. Think of it as a health check for your compliance systems.

We offer planning and compliance advice regarding customs valuation and classification of goods and related intangibles, ensuring alignment with transfer pricing, and corporate and indirect taxes.

We serve a wide range of industries, including aerospace, automotive, e-commerce, chemical and consumer goods, providing tailored solutions to complex customs and trade compliance challenges.

We provide comprehensive services including customs valuation and classification, compliance reviews, risk management and strategic planning to optimize duty and trade costs.

Our approach involves a step-by-step methodology in which we categorize products based on their risk levels and conduct detailed technical reviews to classify them under the appropriate export regulations. While we often use third-party tools, their effectiveness can vary; while often very helpful, they sometimes lack the necessary technical expertise and granularity.

We offer end-to-end sanctions screening, which includes data collection, analysis of alerts, ongoing monitoring and quarterly risk reporting. These managed services are provided at a fixed monthly fee.

Yes, we can help you create an Internal Compliance Program (ICP) that encompasses third-party screening, trade flows and product restrictions.

We initiate the process with an on-site audit to identify risks, followed by the development of a practical roadmap that includes tailored procedures, training and ongoing monitoring.

We don’t provide boilerplate consulting. Our team consists of niche experts in their respective fields, which allows us to determine the best approach for your needs. The key to achieving our clients' desired results is a thorough understanding of their requirements and specific context. We promise no fluff—only results.

The investment deduction and tax credit for R&D are two sides of the same coin, both designed to reduce the tax burden on businesses investing in R&D capital expenditures (Capex). These incentives support the same activities but function differently. As of 2025, this system is also referred to as the "technology deduction".

The investment deduction lowers a company’s taxable income, reducing the amount subject to corporate tax. Companies can opt for a one-off deduction of 13.5% of the R&D investment or a spread deduction of 20.5% of annual depreciation. While this provides long-term tax savings, it is not refundable, meaning companies must generate taxable income to fully benefit. However, unused deductions can be carried forward, making this option attractive for companies with stable profits seeking a long-term tax reduction strategy without accounting hassle.

The R&D tax credit, on the other hand, directly reduces corporate income tax rather than taxable income. Companies can opt for a one-off credit of 3.38% of the R&D investment or a spread credit of 5.13% of annual depreciation. If the credit exceeds the tax due, it can be carried forward for four years, after which any unused credit becomes refundable in cash, providing liquidity to companies with fluctuating profits or limited taxable income. This makes the tax credit particularly beneficial for businesses in high-investment phases that may not yet have consistent taxable profits. As the tax credit is refundable, it must be booked on the balance sheet as a tax asset and on the P&L as a reduction of a tax cost. Moreover, its utilization over time must be correctly tracked. This is not a straightforward process, as it involves tracking carryforwards, additional credits in case of the spread credit, tax offsets and refunds ánd correctly processing these in successive tax returns. Ensuring correct application over time requires experience in the fields of accounting and tax return technique.

Yes you can. But there are some pitfalls. Just to name a few:

First, what you think is R&D may not be R&D for the government. We know exactly how to describe your development activities to highlight the R&D hallmarks, and we even have a tool for that.

Second, you have to maintain a strict link between staff's actual activities and the activities notified to the government. You have the burden of proof, so don't let the government surprise you.

Third, you have to update notifications regularly and keep track of these updates. We regularly onboard clients that have not updated their BELSPO notifications in the last five years. That is a major risk that will not go unnoticed for future investors or acquirers or, worse, the tax authorities.

Don't be a fool, use our tool.

The Belgian innovation income deduction (IID) is an important tax measure designed to encourage companies to invest in R&D by reducing the tax burden on income derived from qualifying intellectual property. Companies can deduct up to 85 percent of their net innovation income from their taxable income, which can lower the effective tax rate on this income down to 3.75 percent, compared to the standard corporate tax rate of 25 percent.

To qualify, the income must come from eligible intellectual property, such as patents, copyrighted software, orphan drugs, plant breeders’ rights, etc (but not trademarks).

The innovation income itself can take several forms, including royalties (including royalties embedded in proceeds from the sale of products or services incorporating the intellectual property), IP divestment or compensation received for IP infringement.

The deduction applies to net income, meaning the gross income from the intellectual property must be reduced by any related (historic) R&D expenses. The system follows a so-called nexus approach, which links the eligible income to R&D activities carried out by the company itself or outsourced under strict conditions.

If a company cannot fully apply the deduction in a given year, the unused portion can be carried forward to future years. This integration into the regular corporate tax system allows companies to manage their innovation-related income efficiently without needing to rely on a separate tax regime, as is sometimes the case in other jurisdictions.

The purpose of this deduction is to stimulate innovation by allowing companies to reinvest the tax savings into further R&D activities, contributing to both business growth and broader economic development.

These terms refer to a beneficial personal income tax regime for income from copyrighted work, often limiting total taxation (including social security) to less than 10% of the income.

Until 2023, a broad range of creative works, including copyrighted software was eligible. This made the system attractive not just for artists and writers, but also for software developers, as it allowed a significant portion of their income to be taxed at a lower rate compared to regular professional income (which is often taxed at >40%). We implemented this incentive for a wide range of clients and secured it through tax rulings.

However, from 2023 onwards, the system was reformed to narrow the scope of eligibility. The favorable tax treatment was limited to more traditional forms of artistic and literary works, implicitly excluding copyrighted software from the scope of the deduction. In practice, this change meant that software developers could no longer benefit from the reduced tax rate on royalties, and income derived from software copyrights was instead taxed as regular professional income at progressive rates, which could be substantially higher than the previous flat rate. One of our tax partners, Maxime Vermeesch, challenged this discrimination before the Constitutional Court for eight larger clients, but the Court unfortunately deemed it justified.

Now, the 2025 coalition agreement includes provisions to reopen the favorable tax regime to copyrighted software. If implemented, this would allow software developers to once again benefit from the reduced tax rates on royalties, aligning software with other forms of creative work under the tax system as before. The total tax rate for the copyright royalties may be increased slightly. Please stay tuned (here and on LinkedIn).

Lots of startups and scaleups don't pay corporate tax as they don't make any taxable profit.

So why should they care about innovation income deduction?

Simple, because historical development costs must be deducted from future innovation income.

Let's say you start developing in 2020 and finally get to break-even in 2025. Then you will calculate IID based on 2025 turnover. But you also have to deduct all development costs from 2020-2024, while you cannot take into account the turnover from those prior years. This will significantly reduce IID for 2025 and the following years.

That's why we say to our clients: start early, benefit later. Offset development costs with turnover as soon as you can, even (long) before break-even.

We even have fee models that accommodate this situation, so you can avoid spending on expert advice when you don't have the tax savings (yet).

As of today, most CFOs, tax managers and HR managers are aware that timely BELSPO submissions are existential when applying wage tax exemptions for R&D. Some of them learned this the hard way during the audit wave of the past five years.

Despite this awareness, we still see a lot of companies with suboptimal BELSPO files.

Some of the issues:

- Very succinct description of activities - impossible to verify R&D nature;

- Still relying on the same 2023 submission in 2025;

- Eligible personnel hasn't been updated for a long time;

- Complete cacophony of submissions, some of them empty, some of them partially filled out, etc. Hard to tell which one is actually relevant.

- etc.

A lot of companies claim more than EUR 100K per year of wage tax exemptions and still are not (fully) BELSPO compliant. However, if a company claims a tax break, it is up to that company to prove that all conditions are fulfilled. If BELSPO is not fully compliant, it is very easy for the tax authorities to successfully reject the tax exemption in full.

Given what’s at stake, it is always worth the effort and cost to maintain BELSPO compliance.

The Belgian Science Policy Office (BELSPO) is a federal government body responsible for shaping and executing Belgium's scientific research policies. It oversees ten federal scientific institutes, manages research programs, and coordinates Belgium's involvement in European and international scientific organizations.

In addition to its primary responsibilities, BELSPO plays a crucial role in administering tax incentives for private sector R&D activities. One significant incentive is the 80% wage withholding tax exemption for researchers, designed to encourage R&D investments by reducing labor costs. To benefit from this exemption, companies must notify BELSPO about their R&D projects or programs before they commence. Beyond the wage withholding tax exemption, BELSPO also manages notifications related to the Innovation Income Deduction (IID) and issues advices that are binding on the tax authorities.

See also our other FAQ about BELSPO.

(first read "What is the Innovation Income Deduction?" (IID))

As of 2016, Belgium’s former “patent income deduction” was broadened to include income from copyright-protected software, provided that software results from R&D projects (or programs). In this context, the Belgian Federal Science Policy Office (BELSPO) plays a pivotal role: they can issue opinions on whether your software development qualifies as genuinely “experimental” from a technical (R&D) standpoint. Importantly, their assessment is binding on the tax authorities.

Strictly speaking, there is no legal requirement to obtain BELSPO’s binding advice or even to notify BELSPO of your R&D activities to claim the IID. However, because the IID reduces corporate tax, the taxpayer bears the burden of proof. If you do not have a BELSPO binding opinion—or at least a detailed R&D notification—it becomes much easier for the tax authorities to reject your IID claim if they are not convinced of the development’s R&D character.

Over the last few years, some advisors have downplayed BELSPO’s importance, focusing mainly on calculating the deduction and completing the tax return. But claiming the IID “on the client’s own R&D risk” disregards the fact that tax authorities can swiftly disallow the deduction if the R&D nature of the software is not thoroughly demonstrated.

Since early 2024, BELSPO has been scrutinizing new and existing R&D notifications much more rigorously. Even projects or programs that previously obtained a binding opinion must show clear ongoing R&D hallmarks upon update. Without sufficient proof, acceptance is no longer "automatic".

Going forward, the software development's R&D status will need to be demonstrated to BELSPO concretely and updated regularly. BELSPO’s assessment of whether a software development project counts as experimental R&D aligns with the Frascati Manual, a key OECD reference for defining and measuring research and experimental development. Under these guidelines, five core criteria help determine if a software project genuinely qualifies as experimental development. First, it must show novelty, producing new or significantly enhanced solutions rather than routine adaptations. Second, it involves technical uncertainty, where the outcomes cannot be easily predicted or replicated using existing, publicly available knowledge. Third, the work features complexity and experimentation, meaning systematic exploration and multiple rounds of testing rather than straightforward programming tasks. Fourth, there is a systematic approach, the project follows a structured plan with defined objectives, methods, and documentation. Finally, the results must be reproducible or transferable, contributing insights that others could replicate or build upon.

Indeed, preparing notifications and periodic updates with these R&D hallmarks in mind is specialized work. Our tax lawyers at Alongsight Legal have a lot of experience helping clients navigate the BELSPO process. Our secure client portal (https://belspo.alongsight.com) structures the relevant detailed questions around recognized R&D criteria, helps process client input for BELSPO, and flags any areas that may fall short.

We consider BELSPO to be an integral part of any robust IID strategy and do not take on IID projects unless BELSPO is included—this way, we can be certain of delivering actual value and security for your IID claim.

The tool was developed to offer clients greater legal certainty with regard to BELSPO, a government agency that decides, for tax purposes, whether certain activities qualify as research and development (R&D) or not.

There's a number of reasons why we created this tool:

1. The questions asked by BELSPO on its portals are often very open-ended, and companies frequently do not provide sufficiently precise answers. Until recently, there was no particular incentive to answer with precision, since negative opinions were rarely (if ever) issued. This changed in the course of 2024, following a reshuffle at the competent BELSPO department. In 2025, it is extremely important to demonstrate in concrete terms that a given process qualifies as R&D. The questions on our portal specifically probe the factors that BELSPO uses to determine whether a particular process counts as R&D.

2. In the case of continuous development activities, it is crucial to demonstrate, year after year, that there is still genuine R&D taking place—rather than routine or repetitive development. Ideally, this proof should be provided annually. In many of the files we take over each year, we regularly discover that BELSPO has not been updated for years. Our tool monitors the status of these files and ensures that even after an extended period, they remain properly maintained - to avoid unnecessary tax risks for our clients.

3. Fit for the future: In anticipation of policy changes and evolving standards for R&D tax incentives, we are ensuring that companies can adapt seamlessly. The 2025–2029 coalition agreement underscores the government’s commitment to both fostering R&D and improving output: "As soon as possible, a covenant will be established between the competent federal administration for R&D and the tax administration, containing clear criteria for how they will cooperate, thus guaranteeing loyalty between the administrations and maximizing legal certainty for taxpayers. Furthermore, companies will have the opportunity to be recognized as research centers, giving them certainty about a stable fiscal framework in the long term."

- We help you by providing access to your key data for CBAM (Carbon Border Adjustment Mechanism) reporting, ensuring compliance and supporting your sustainability efforts throughout the process.

- Collaborate with Suppliers: We assist you in establishing effective communication with your suppliers to collect the necessary data on emissions associated with the production of imported goods subject to CBAM.

- Prepare for Compliant Reporting: We help you get ready to submit CBAM reports in the required compliant format, ensuring that your reporting meets all regulations.

- Refine Your Supply Chain: We help you identify and address potential vulnerabilities in your supply chain by forming strategic partnerships and aligning your sourcing strategy with your carbon reduction objectives.

- We provide assistance in implementing and constructing your compliance framework, identifying suitable tools and opportunities for cooperation.

- We assist in mapping your position on the EUDR map by connecting commodities and products with relevant legal entities and mapping the value chain up to the required level.

- Additionally, we identify the EUDR requirements for each legal entity specific to your commodities and products.

- We provide a thorough analysis of your specific EUDR situation and obligations related to your products and commodities intended for the EU market. This assessment helps you understand the steps needed to ensure compliance with EUDR.

- We work together with you to develop short-term and mid-term strategies and scenarios to ensure EUDR compliance across various areas including changes in procurement procedures, key performance indicators (KPIs), and exploring opportunities for resource-saving and technology-based approaches.

Absolutely. Many of the new sustainability regulations introduced under the EU Green Deal also pertain to trade. As customs and trade compliance experts, we understand both customs processes and how to build internal compliance programs. We develop compliance strategies for the EU Deforestation Regulation (EUDR) and the Carbon Border Adjustment Mechanism (CBAM), complete with action plans and due diligence procedures customized to your needs.

The Carbon Border Adjustment Mechanism (CBAM) is essentially the EU's new carbon import tax, designed to complement the EU’s domestic Emission Trading System (ETS).

CBAM has been in force since October 1, 2023. It will enter into its definitive phase as of January 1, 2026.

We help companies get ready and implement the necessary procedures and tools and assist in the go-live phase.

Yes, we can assist with resolving double taxation issues, including mutual agreement procedures.

We help mitigate risks by establishing a compliant and robust group-wide transfer pricing policy and preparing high-quality documentation aligned with local transfer pricing regulations.

Absolutely. We have extensive experience in handling transfer pricing audits, which are increasingly common. We provide support from the first request for information through the administrative and judicial procedure, ensuring a robust defense of your transfer pricing practices.

Transfer pricing relates to the remuneration of transactions between related enterprises in a cross-border context. Its primary goal is to ensure these transactions comply with the arm's length principle, which requires that intercompany transactions occur under conditions comparable to those between unrelated companies in similar circumstances.

Yes, we provide country-specific advice tailored to local requirements. Additionally, we collaborate with a global network of advisors to address transfer pricing obligations in other jurisdictions.

No, transfer pricing is relevant for any company part of an internationally active group. It can apply as early as the start-up or scale-up phase if the company operates in multiple countries.

The Belgian tax shelter for investments in startups is a generous personal income tax incentive designed to encourage private investment in start-ups and scale-ups. This initiative aims to stimulate entrepreneurship in Belgium by making it easier for young companies to attract the capital needed for growth while providing investors with a significant tax incentive.

By investing in these companies, individual taxpayers can receive a personal income tax reduction of 25%, 30%, or 45% of their investment, depending on the type of company.

Eligibility criteria for companies are as follows:

- Start-ups (Micro-enterprises) must be less than four years old, have fewer than ten employees, a balance sheet total under €350,000, and an annual turnover below €700,000. These companies are eligible for a very generous 45% tax reduction on investments.

- SMEs must also be less than four years old, have fewer than 100 employees, a balance sheet total under €3,650,000, and an annual turnover below €7,300,000, qualifying them for a 30% tax reduction on investments.

- Scale-ups (growth companies) must be between four and ten years old, have fewer than 50 employees, a balance sheet total under €4,500,000, and an annual turnover below €9,000,000. These companies qualify for a 25% tax reduction on investments.

Investors can invest up to €100,000 per year through the tax shelter regimes and must hold their investment for at least four years to maintain the full tax benefit. Only individual taxpayers are eligible for this tax reduction; legal entities such as companies, non-profit organizations, and cooperatives cannot benefit. To qualify, the investment must be made in cash, and investors must receive new shares issued by the company in return. Debt securities or other financial instruments are not eligible for the tax shelter.

As the tax shelter is subject to a lot of complicated and counterintuitive conditions and formalities, we have been asked regularly to advise on this subject and represent taxpayers in case of tax audits.

Finally, please note that the federal coalition agreement 2025-2029 mentions that the government intends to unify the startup and scaleup conditions into a completely new tax shelter.

Employee Share Option Plans (ESOPs) allow individuals—mainly employees but also self-employed directors—to buy shares in the company they work with at a predetermined “exercise price.” These plans can motivate key people to stay and share in the company’s success. In Belgium, a specific tax regime applies if the beneficiary accepts the offer in writing within 60 days of receiving it, making the moment of grant the main taxable event. If acceptance occurs after 60 days (if accepted by the Plan), taxation shifts to the date of exercise

When the options are not listed on a stock exchange, the standard way of calculating the taxable benefit is to take 18% of the market value of the shares. If certain conditions are met—such as not being able to exercise for at least three years after the grant—the rate can drop to 9%. However, this reduced rate does not apply to self-employed directors, often with personal service companies, who remain subject to the 18% rate. If the option is already “in the money” (meaning the exercise price is below the share’s current market value), the difference (the built-in discount) is also considered taxable income. If you do not accept the options at all, no taxable benefit arises.

Generally, employees do not pay Belgian social security on the taxable value at grant, unless the option is “in the money” or there is a built-in guarantee ensuring a specific payout. In those situations, the additional value may be subject to social security contributions. Self-employed individuals also fall under their own social security rules, and contributions at standard rate apply if their total income has not reached the relevant ceiling.

Later on, when you sell the shares acquired through an ESOP, any capital gains are typically tax-free for Belgian residents, as long as the sale is considered a private transaction and not part of professional or speculative activities (which is accepted to be generally the case).