New BELSPO 2025 guidelines for innovation deductions on software: what do you need to know?

The innovation deduction is an important tax benefit for Belgian companies investing in research and development (R&D), particularly in the software sector. To support companies and the tax administration, BELSPO (the Federal Science Policy Office) regularly publishes guidelines. Recently, the new 2025 guidelines were published, which contain some crucial points of interest for software developers wishing to enjoy or retain the innovation deduction.

The innovation deduction allows companies to deduct a certain percentage of their net income from innovation from their taxable profits. For software, this includes copyrighted computer programs and derivative works resulting from an R&D project or program. You can read more general information about the innovation deduction at our specific page on the innovation deduction.

The new BELSPO 2025 guidelines, which you can access at the BELSPO website, clarify a number of procedures and substantive requirements. These guidelines are the result of consultations between BELSPO and the FPS Finance to better align both administrations. Below we summarize the main points:

Important: no legal obligation to register

A crucial point to understand is the distinction between notification and request for advice. A notification must be made in order for BELSPO to prepare an opinion. However, the request for an opinion is optional. There is no legal obligation of prior notification for the application of the innovation deduction - the notification is only necessary to allow BELSPO to issue a binding opinion.

Although there is no legal obligation, it is highly recommended to request a binding opinion. After all, rulings concerning software are only granted subject to obtaining a positive opinion. Even if the deduction is applied without a ruling, it is advisable to request a binding opinion so that it can be presented during an audit.

When to request advice?

You are free to choose when to request advice: in advance (based on planned developments), during or after the development of the software. Beware, however: if prior advice deviates from the planning, its validity may be questioned.

Scope of new directives

The new guidelines apply to all new requests for binding advice, including in cases where positive advice has already been obtained in previous years.

The application

The notification procedure has undergone the most profound changes. What used to be somewhat leniently applied is now strictly enforced:

• Each project can be notified only once. This rule applies without exceptions and has practical implications. Companies that in the past were inclined to submit multiple notifications for the same project as a matter of caution can no longer do so.
• Copies of previously notified projects with limited modifications are considered repetitions and do not qualify for the tax benefit. BELSPO applies a strict test here: even if there is evolution or improvement of an existing project, the new development must be clearly distinguishable from the earlier notification.

This tightening means that software companies must think much more carefully about the scope and timing of their notifications. It is crucial to submit a complete and correct notification from the outset, as retrospective recovery is not possible.

Content

BELSPO has also tightened quality requirements for applications:

• A meaningful title is required. Titles such as "Project X07" or similar code names are no longer accepted. The title should make clear the content of the project so that outsiders can understand what the project is about.
• The application must be made in one of the official languages of Belgium. This means Dutch, French or German. English language applications are not allowed, even though English is often the language of instruction in technological sectors.
• Use the online form as much as possible. BELSPO is committed to digitization and explicitly asks for the online form for innovation deduction software to be used, because that way all the information is bundled together in the best possible way.
• Additional information can only be forwarded in exceptional cases. When it is still necessary to provide additional documentation, it should be concise: no more than 5 pages of structured text or 10 slides. General company descriptions are not considered essential to the evaluation.

Period of notification

An important practical change concerns the recommended duration of applications:

• It is recommended that the application period be limited to a maximum of 3 years. This limitation is based on the observation that technological innovations in the development of computer programs have a limited shelf life.
• After this period, new submissions can be submitted for further developments, provided the content is clearly distinguishable from previous submissions. This allows companies to build on previous innovations, without coming into conflict with the rule that each project can only be submitted once.

This three-year cycle aligns with the reality of software development, where technologies and frameworks evolve regularly and projects are often implemented in phases.

Proof of application and changes

Evidence management becomes even more important in the new system:

• It is important to keep proof of the initial filing and any changes. This is essential because tax audits occur after the fact and the burden of proof is on the company.
• It is recommended that you take your own screenshots. BELSPO can only provide you with a printout of the latest version, so companies must provide their own historical documentation.
• An annual update of the notification is not necessary, provided that the initial notification is complete and correct. This simplifies the administrative burden while increasing the importance of a correct initial notification.

Option advice for several years

You can use the option to seek binding advice for several years together (maximum 3 years) and avoid repetition.

Binding opinion, decoupling BV exemption R&D

A fundamental procedural change concerns the separation of different tax measures:

• It is no longer possible to request an opinion for the innovation deduction through the notification procedure for the BV exemption R&D. This disconnect means that companies wishing to apply both measures must follow separate procedures.
• However, binding opinions granted under the BV exemption can be used under the innovation deduction, provided a clear connection is demonstrated. The burden of proof here is on the company to demonstrate the connection between the two procedures.

This change requires a more coordinated approach when companies want to combine multiple tax benefits.

Content of the opinion request

For companies that want certainty about the qualification of their projects, there are new rules for requests for opinions:

• Avoid general project descriptions. It is recommended that general descriptions be avoided because they provide little information about the technological developments that took place in the implementation of the project.
• R&D projects that are new to the company, but whose resulting computer program as a product has already been available on the market for some time, are not eligible for the innovation deduction. This rule prevents companies from claiming tax benefits for internally developing technologies that are already generally available in the market.
• Projects involving only aesthetic changes, general functions or customer-specific modifications to existing software do not qualify. BELSPO applies a strict definition of what qualifies as "innovation." For example, aesthetic changes, additions of generally known functionalities or customer-specific adaptations of standardized computer programs cannot be considered the result of research or development.

Files submitted to the Ruling Committee

Specific coordination rules apply to complex situations that also involve tax rulings:

• If the application to BELSPO is related to a ruling application to the Ruling Commission, the period of the binding opinion should be aligned with the ruling period. This alignment prevents inconsistencies between different tax procedures.
• If the BELSPO opinion is negative, the applicant must notify the Ruling Commission. A negative opinion from BELSPO basically leads to the submission of an avenant on the delivered preliminary decision.

Practical recommendations

Based on the new guidelines, we recommend:

1. Provide a clear and concise application that demonstrates innovative nature
2. Use the opportunity to seek binding advice for several years together and avoid repetition
3. Ask for binding advice in ruling files for the period of the ruling

Action required for your business

BELSPO's new 2025 guidelines emphasize the importance of a careful and correct approach to applying for and administering the software innovation deduction. It is crucial to ensure that your software projects are correctly notified and meet all the set criteria to (continue to) qualify for this important tax benefit.

After reading these contributions, do you have questions about the innovation deduction for your software projects, or would you like guidance on the application process or interpretation of these new guidelines? Please do not hesitate to contact our office. Our specialized lawyers will be happy to assist you with tailored legal advice.

---