Your code is protected by copyright. Your tax benefit is not. As of January 1, 2026, lawmakers will once again recognize that source code can be protected by copyright—but the tax picture looks completely different.
The copyright system has undergone a tumultuous evolution in recent years. What was originally intended for writers and musicians, became a widely used system in IT and Consulting. This led to a political debate and ultimately to a reform in 2023, in which software development was explicitly excluded.
Starting January 1, 2026, computer programs and source code may once again qualify as protected works. However, the rules have since been significantly revised: the The flat-rate fee has been abolished for those who do not have a certificate of artistic merit—and that includes virtually all IT consultants.
What is the copyright regime?
When you create a work of art and the rights transfers to a client, employer, or your own company, part of your compensation may qualify as income from movable property from copyright royalties. That portion is taxed at a flat rate of 15% Withholding Tax — not counting the progressive tax rate on earned income, which can be as high as 50%.
The Rules at a Glance
Before the 2023 reform, a flat-rate expense deduction. For IT consultants, this amounted to an effective rate of 7.5% in the first tax bracket. Starting in 2026 that deduction is no longer available: The 15% is calculated based on the full gross amount, unless you can demonstrate and provide proof of the actual costs incurred.
| Example based on €10,000 | Before 2023 | Starting in 2026 |
|---|---|---|
| Gross royalties | € 10.000 | € 10.000 |
| Flat-Rate Fee (50%) | − €5,000 | € 0 |
| Taxable base | €5,000 | € 10.000 |
| Withholding Tax (15%) | €750 | €1,500 |
| Net Receipts | €9,250 | €8,500 |
| Effective tax rate | 7.5% | 15% |
* Excluding municipal taxes.
Who is this program intended for??
Not every IT professional is eligible. The deciding factor is whether you creative work generates and the rights transfers.
Software developers, programmers, and IT architects who write source code.
Help desk, system administration, and purely executive features.
The line isn't always clear-cut. A ruling The Preliminary Rulings Service offers the greatest legal certainty—and we can assist you with that as well.
Other Terms and Conditions
- • 30/70 threshold: Copyright may be valid for a maximum of 30% account for a portion of the total compensation.
- • Ceiling: maximum €77,220 (indexed to 2026) per year. Anything above that amount is taxed at a progressive rate.
- • Four-year average: If the ceiling is exceeded based on the average of the previous four years, the regime for the full year expired.
Caution
Was the flat-rate deduction still applied in the first half of 2026? If so, the following will apply when filing the personal income tax return (tax year 2027): retroactive adjustment with additional payment. So please have your situation checked as soon as possible.
Now what?
Whether this scheme applies to you and what your net benefit will be depends on your job title, income level, pay structure and the way you work. We review each case individually.