Scope of the reformed investment deduction from 2025

Basic deduction of 10%

Sole proprietors, self-employed professionals, and small businesses are eligible for the basic deduction of 10%. This replaces the former standard one-time investment deduction.

Important change: Under the new regulations, investments with a negative climate and environmental impact are excluded from this basic deduction, provided market alternatives exist. The exclusions are listed in a climate and environmental exclusion list also published on 31 December 2024. Examples of excluded investments include:

• Investments in the distribution, storage, or refining of fossil fuels;

• Investments that use fossil fuels to generate electricity or heat, or to power certain vehicles;

• Investments in pesticide production;

• Investments in activities that manufacture, market, or use certain toxic substances.

Doubled basic deduction for digital fixed assets (20%)

As of 1 January 2025, sole proprietors, self-employed professionals, and small businesses can benefit from a doubled basic deduction of 20% for investments in digital fixed assets.

Expanded scope: Previously, increased deductions applied to investments in digital payment and invoicing systems, as well as ICT security. The Royal Decree of 31 December 2024 has broadened this scope to include:

• Registered cash register systems;

• Investments to comply with GDPR and data protection regulations;

• Systems for the accounting and financial management of the business;

• Systems for online visibility and customer acquisition;

• CRM systems (management of commercial, contractual, and administrative customer relationships).

Thematic deduction: 30% or 40%

The thematic deduction provides tax benefits of 40% for small companies and 30% for large companies. The lists published on 31 December 2024 specify eligible investments.

These concern investments in energy efficiency and renewable energy, carbon emission-free transport, environmentally friendly investments and supporting digital investments related to the previous three categories.

Energy investment list

The investments in energy efficiency and renewable energy qualifying for the thematic deduction are detailed in the energy investment list. Key conditions include:

• Investments with a payback period of less than three years are excluded.

• Investments with an Internal Rate of Return (IRR) higher than13% are excluded for large companies. Regional authorities provide a template for calculating the IRR.

• Certain categories require the investment to be documented in an energy study or audit.

Transport investment list

This list specifies eligible investments in carbon emission-free transport, divided into four groups: rail transport, road transport, sea and river transport, and charging infrastructure.

Environmental investment list

This list includes environmentally friendly investments, categorized into resource management, climate-related investments, and initiatives to improve the living environment.

Note: Investments under €1,000 are excluded from all categories above.

The list of supporting digital investments eligible for the thematic deduction has not yet been published.

Prohibition on combining regional aid

The increased thematic deduction of 30% or 40% can only be applied to investments that do not receive regional aid, unless explicitly stated otherwise in a Royal Decree. The published decree does not provide an exception to this prohibition. Therefore, the thematic deduction cannot currently be applied to investments receiving regional aid.

Mandatory certificate

For investments made until 31 December 2024, a certificate must be requested from the relevant regional authority within three months after the fiscal year-end in order to claim the increased investment deduction for energy-saving investments. Similarly, a certificate must be requested for environmentally friendly investments in research and development. In the Walloon and Brussels regions, this deadline is also three months.

Under the new regulations, effective for investments from 1 January 2025, a certificate must be requested from the federal or regional authority, depending on the nature of the investment. These certificates must also be requested within three months after the fiscal year-end.

In the Flemish Region, the responsible service is updating the application tool, which will only be available as of 13 January 2025.

For the technology deduction (the former deduction for environmentally friendly investments in research and development), the formalities and deadlines remain unchanged.

If you have questions about the scope of the investment deduction or getting the required certificate, feel free to contact one of our experts via the contact form below.