The innovation income deduction (DRI): a driver of innovation in Belgium
The innovation income deduction (DRI) is often perceived as a mechanism to reduce business taxes. However, this system offers many other benefits. Here are 7 lesser-known reasons why the DRI is a real lever to boost your innovation and your taxes.
1st advantage: Encourage innovation and local R& D
By reducing the tax burden, the DRI encourages companies to intensify theirinvestments in research and development (R&D)on Belgian territory. This system thus promotes the creation and exploitation of innovative intellectual property (IP) assets.
2nd advantage: Strengthen international competitiveness
In a highly competitive global context, being able to benefit from a tax advantage such as the DRI allows Belgian companies to support their competitiveness on an international scale, by stimulating their capacity for innovation and their attractiveness.
3rd advantage: Maximize the value of intellectual property
The DRI encourages companies to protect, enhance and monetize their innovations through patents, software and other IP assets . This support helps make intellectual property a key pillar of business growth.
4th advantage: Curb relocation and capital flight
Thanks to its attractive tax framework, the DRI reduces the incentive to transfer intangible assets to countries with more advantageous taxation. It thus plays a key role in retaining in Belgium the fruits of R&D , often carried out with the support of public funds.
5th advantage: Adopting international tax standards in Belgium
Aligned with OECD principles and European standards through the application of the Nexus ratio , the DRI strengthens Belgium’s compliance at the international level. This compliance with standards improves the country’s tax reputation, encourages investment in innovation and R&D , and makes the country increasingly attractive.
6th advantage: the DRI is integrated into the ecosystem of innovation aid
The DRI does not operate in a vacuum: it can be combined with other tax incentives, such as the partial exemption from paying professional withholding tax (DPP) for researchers. This complementarity makes it possible to provide tax support to companies throughout the innovation cycle , from R&D design to the commercialization of IP assets.
7th advantage: Boosting strategic sectors
Since its expansion to software in 2017, the DRI has been supporting digital industries and technology companies. It is also an asset for key areas such as biotechnology , thus consolidating Belgium’s place among the leaders in innovation .
The DRI: a strategic asset for your growth and innovation
Much more than just a tax benefit, the DRI is a strategic tool to stimulate your growth , protect your intellectual property and support your R&D investments . Would you like to discover how to take full advantage of it? Our experts are here to support you in this process. Contact us to discuss your projects together!