Expertise

Withholding tax exemption for researchers

You can reduce the nominal tax on the salaries of your employees by making use of Belgian regulations that aim to stimulate innovation and development in Belgium.
Up to 80% exemption from withholding tax for the salary of researchers.
Can be applied to any company or knowledge institution that employs researchers.

The Flemish Agency for Innovation & Entrepreneurship provides subsidies to companies to expand or strengthen their research and development activities.
Support for large investment and training projects that aim to transform both the company and the Flemish economy.

Starting a new business or activity requires a comprehensive business plan that will allow you to convince investors, governments and/or future customers to invest in your company or your product.
With a well-drafted business plan you can evaluate the viability of your project yourself.
During execution, your business plan will help you stay focused on what matters.

Up to 80% exemption from withholding tax for the salary of researchers in companies and knowledge institutions
The exemption can be applied for
- All companies and knowledge institutions that employ researchers with a PhD degree, civil and industrial engineers and holders of certain master and bachelor degrees
- Companies that pay wages to researcher employees on research and development projects within the framework of cooperation agreements with universities or colleges in the European Economic Zone or with accredited scientific institutions (no diploma requirements)
- Young innovative companies employing scientific profiles such as researchers, research technical profiles, project managers in research and development.
How can you use this?
- Palatine advises and assists you with the registration with Belspo, with the development and maintenance of your exemption file, with communication with your social office and, if necessary, with passing possible checks.
- Palatine has the expertise to maximize your exemption at a reduced audit risk level.

VLAIO supports innovative and groundbreaking ideas and projects through subsidies.
Both research and development projects are eligible up to a maximum grant amount of € 3 million (or 60% of your total project budget).
Grants can be granted after review of your project plan (up to 50 pages) including business plan, impact analysis and detailed project budget.
How can you use this?
- Palatine supports you in choosing the right subsidy strategy that best suits your project.
- We will prepare a subsidy file for you that gives you the opportunity to complete your application yourself. Alternatively, we can prepare a detailed file for you based on your input.
- We support you in communication with VLAIO and help you comply with the necessary reporting.

The distinction between research and development projects is based on the degree of knowledge acquisition and the degree of project implementation challenges.
Development projects include activities of acquiring and using existing (scientific, technical, business and other) knowledge and skills with the aim of planning, designing and prototyping new, modified or improved products, processes or services.
Development projects thus mainly comprise acceptable R&D activities (ie there should always be sufficient challenges), but do not meet the definition used for research projects.
In principle, a development project has a maximum duration of 2 years.

The distinction between research and development projects is based on the degree of knowledge acquisition and the degree of project implementation challenges.
Research projects mainly consist of activities in which new knowledge, insights and skills are built up in a critical and systematic way. The aim of this knowledge building is to use it at a later stage in the development of new products, processes or services or to remarkably improve existing products, processes or services. It is essential that these elements are initially reflected in the defined project objectives. A project (part) is considered a research project if both of the following conditions are met:
- the project (part) represents a clear or substantial step forward for the company in terms of knowledge, insights and skills, and at least a demonstrable (but possibly limited) progress compared to the accessible state-of-the-art in the domain or the sector in which the company is active or will valorise the results.
- the project (part) is accompanied by important challenges. Risks not taken into account here are those of a commercial nature, management risks and uncertainties about manpower, timing and budget.
In principle, a research project has a maximum duration of 3 years.

A good business plan converts the mission and strategy of your project into concrete objectives and measurable results.
It describes the team, the resources and where they come from, your product, the necessary developments and investments, the customer, the price and your expected commercial result.
When making a business plan, it is important to question yourself, your product, your financial plan and overall strategy. Therefore, regularly ask for feedback or help from experienced business managers to avoid surprises.
What can Palatine do for you?
- We are happy to help you develop or evaluate your business plan. Our expertise in making realistic business plans will help you convince investors, governments, banks or customers to invest in your company or product.
- We support you in a constructive way to discover the weaknesses in your business plan and help you draw up a realistic financial plan.
- Our experience in the medical sector helps you to correctly assess the legislation and approval conditions of your medical product.