There are a number of different incentives for companies performing R&D work in the region of Flanders. Below you will find an overview of those provided through the IWT agency and others available through taxation-related schemes. These can relate to R&D projects or personnel involved in such projects.

IWT-Flanders

As a Flemish Government institution, IWT-Flanders (Institute for the Promotion of Innovation by Science and Technology in Flanders) supports and stimulates industrial research and technology transfer in the Flemish industry. All companies with activities in the Flemish region, and especially SMEs, are able to request IWT-Flanders assistance in -projects and make use of IWT services.

Companies are able to present technologically orientated projects to IWT-Flanders with a view to receiving financial support. Three types of projects are eligible:

• Basic industrial research: i.e. scientific-technological research focused on the generation of new knowledge
• Prototype or development activities: i.e. the transformation of technological knowledge into the design of new, modified or improved products, processes or services
• Mixed research: i.e. research activities that combine basic industrial research as well as prototype or development activities

Each project is independently evaluated with regard to scientific and technological value as well as its valorization potential and strategic importance to both the company and Flanders as a region.

In addition to financial support, IWT-Flanders offers technological advice, stimulates networking, provides partner search services and provides information concerning international programs with regard to technological innovation.

IWT
Orion Center
Bischoffsheimlaan 25
B-1000 Brussels
Dhr. Peter Verstraeten
Tel: 32-(0)2 209 09 00
Fax: 32-(0)2 223 11 81
Internet: www.iwt.be
E-mail: info@iwt.be

Reimbursement grants

The basic support percentage is dependent on the type of research project:

• Industrial basic research: 50% of the accepted costs
• Development of prototypes: 25% of the accepted costs
• Mixed research: 38% of the accepted costs

The accepted costs are based on the personnel costs. Other additional costs are a percentage of the personnel costs (normally 50%, 60% for SMEs). The support can be raised by 10% in certain circumstances. The increase is cumulative but limited up to 75 % for industrial basic research and 50 % for development projects. SMEs can also obtain additional pre-financing through a subordinated loan. The overall total is limited to 80% of project costs.

A decision is made concerning the admissibility of the project within 14 days of the file being submitted. A decision on financial support is made within 75 days of a positive evaluation.

Grants for research institutes in corporation with companies

IWT subsidizes strategic basic research in order to create knowledge platforms combining several technology disciplines and application domains with an economic or social goal. These platforms can consist of companies, universities and research institutes. A project usually has duration of four years and a maximum subvention of €500,000 on an annual basis. The project must be submitted by at least one Flemish R&D partner and the budget of a foreign partner in relation to the project is limited to 20%. Property rights of the project go to the university partner.

Grants for young people

IWT offers post-graduate grants for research specialization at PhD level and post-doctoral fellowships in technology domains. The aim is to promote and encourage the transfer of research results to industry

Tax allowances for R&D personnel

In order to stimulate R&D activities, the Flemish Government has introduced a one-time tax exemption for companies hiring additional research or quality assurance personnel. A deduction from taxable income is granted for scientific researchers, persons in charge of developing a firm’s technological potential, the head of a quality assurance department and the head of an export department. There are higher exemptions for “highly qualified researchers employed in the company in Belgium for scientific research”. The company must be profitable because the deduction cannot be carried forward. A certificate must be applied for within three months of the last day of the taxable period. It must be enclosed with the tax return, together with a list showing all names of the relevant staff members.

Scientific research and the development of technological potential:
Federale Diensten voor Wetenschappelijke, Technische en Culturele Aangelegenheden
Dienst Productie en Analyse van Onderzoek-en Ontwikkelingsindicatoren
Wetenschapsstraat 8
B-1000 Brussels
Tel: +32 2 238.36.70

Head of the integrated quality control department:

• For companies employing 50 workers or more:
  Ministerie van Economische Zaken
  Bestuur Kwaliteit en Veiligheid - Afdeling Kwaliteit - Dienst Accreditatie
  North Gate III – 4de verdieping
  Koning Albert II – laan 16
  B-1000 Brussels
  Tel: +32 2 206.47.30
• For companies employing fewer than 50 workers
  Ministerie van Middenstand en Landbouw
  WTC III – 27ste verdieping
  Bestuur van het KMO-Beleid
  Simon Bolivarlaan 30
  B-1000 Brussels
  Tel.: +32 2 208.32.11

Head of export:
Belgische Dienst voor de Buitenlandse handel
Dienst Promotieacties
WTC-toren I, bus 36
Koning Albert II – laan 30
B-1000 Brussels
Tel.: +32 2 206.35.11

Investment deduction for environmentally friendly investment in R&D

Investment deduction is a basic accounting principle in the Belgian accounting system in order to stimulate investment. Fixed assets used in Belgium to promote research and development of new products and forward-looking technologies not harming the environment, or the purpose of which is to reduce the environmental damage as much as possible, are eligible for an increased investment deduction of either 13.5% on the acquisition value or 20.5% of annual depreciations permitted for tax purposes.

In order to be able to benefit from the deduction, a certificate must be applied for and enclosed with the tax return. Tax legislation does not provide for any date on which such a certificate must be applied for, but it is preferable to apply for it within three months of the last day of the taxable period.

Certificates can be applied for from:

Departement Leefmilieu en Infrastructuur
Administratie Milieu-, Natuur-, Land- en Waterbeheer
Afdeling Algemeen Milieu- en Natuurbeleid
Graaf de Ferraris-gebouw
Koning Albert II-laan 20, bus 8
B-1000 Brusssels
Tel: +32 2 553.80.66
Fax: +32 2 553.80.55