As we announced investment deductions have undergone a major reform since Jan. 1, 2025. The long-awaited investment lists were published just before the year-end, shedding more light on the three new categories. What does this mean concretely for your business? We list the most important changes.
What is the investment deduction?
The investment deduction allows an additional percentage of the acquisition or investment value of new tangible and intangible fixed assets to be deducted for tax purposes. This applies to assets used in Belgium for professional activity.
This deduction reduces taxable profits and can be applied in both personal and corporate income tax, separate from ordinary depreciation.
Since 2025, the investment deduction consists of three pillars:
- Basic deduction
- Thematic deduction
- Technology Deduction
For the same investment, only one of these categories can be applied.
1. Basic deduction: 10% standard, 20% for digital investments
The basic deduction is designed for sole proprietors and small companies. The standard rate increases from 8% to 10%. An increased deduction of 20% applies to investments in digital fixed assets.
An important novelty is that investments for which a more ecological alternative is available are excluded. Among other things, this means that the installation of a gas boiler is no longer eligible, as more sustainable alternatives such as electric heating and heat pumps are available. Investments in fossil fuels and associated infrastructure are also excluded.
For digital investments, there is a separate investment list that includes the following assets:
- Payment and billing systems
- Digital CRM systems
- ICT security
2. Thematic investment deduction: up to 40% deduction for sustainable investments
This category offers an increased deduction of 40% for small companies and 30% for large companies. The investment must be included in one of the following lists:
- Energy investments: Efficient energy use and renewable energy, such as battery farms.
- Transportation investments: Carbon emission-free transportation, such as 100% occupational electric vans.
- Environmental investments: For example, water-efficient systems or permeable driveways in business parks.
- Digital support: Digital assets linked to the above investments (a separate list on this will follow).
Stricter conditions for energy investments
Some additional requirements apply to energy-related investments:
- In certain cases, an energy study or audit is mandatory.
- Investments with a payback period of less than three years are not eligible.
- Large corporations may be excluded if the investment is a Internal Rate of Return (IRR) of more than 13% has.
Solar panels and storage systems remain eligible in principle, but only if they have a sufficiently long payback period. It is therefore appropriate to request a detailed analysis from suppliers.
Application process via web application
A new digital platform is being developed for the thematic deduction, where entrepreneurs can apply for the necessary certificates. The application must be submitted within three months of the closing date of the fiscal year.
3. Technology deduction: focus on innovation
The former investment deduction for research and development (R&D) and patents was transformed into the technology deduction. The base rate is 13.5%, with an increased 20.5% for staggered deduction on R&D investments.
Thus, this deduction continues to target companies that invest in innovative products and processes.
What does this mean for your business?
This reform makes the investment deduction more attractive for those investing in digitalization, sustainability and innovation. At the same time, stricter criteria are applied, especially for energy investments.
In addition, the federal and regional governments still need to work out further details to apply the regulations uniformly. This may provide additional clarification or changes in the coming months.
Unsure if your investment qualifies? Contact your client manager or one of our experts. That way, you'll maximize your 2025 tax benefits.
