@TheOffice is the first Flemish accountancy firm to be accepted by the INAA group.

After a favorable evaluation of our internal organization and professional qualities, our membership of the INAA group is a fact.

INAA stands for “International Association of Independent Accounting Firms”.   It is an international network of certified accountants, auditors and tax consultants, spread over more than 50 countries on 6 continents.

Each country has its own local regulations, taxation and customs. From now on, this network allows us to provide specialized assistance and advice to Belgian SMEs that want to set up subsidiaries or branches abroad and help our clients even better in their international activities

more certainty concerning stock option plans for consultants active through management companies

The implementation of a stock option plan is possible using either options or warrants. Many companies wish to reward certain ‘ key persons ‘ well and commit them for a long time to the company. Because of its favorable tax treatment, the granting of stock options is an interesting tool. Until recently,  it was unclear whether this tax system also applies where the relevant person is active through a management company. On 2017, April 13, the tax administration has introduced a circular and set out how such stock options should be treated and thus implicitly confirmed that the tax system of the stock options indeed applies at “the granting by a company of stock options on its shares to the Managing Director of a management company that provides services to the former company”.

This circular also clarifies the calculation of the benefit: the tax base is basically equal to 18% of the actual value of the underlying shares. However, when the option is granted for a period exceeding five years, the taxable benefit is increased by 1% per year (or part of a year) that exceeds five years. The rate of 18% cannot be reduced by 50% even if the management company is appointed as a director of the company that has issued the stock options.

Do not hesitate to contact us if you would like more information about the practical application of this system.

The new Innovation Deduction: an Opportunity for IT companies

On February 2nd, 2017, The Belgian Parliament has approved the law introducing a tax "innovation income deduction".

This deduction was introduced retro-active as of July 1st, 2016 and can therefore already be applied for the past fiscal year.

The income eligible for the deduction must relate to intellectual property rights of :

1/ patents or supplementary protection certificates;

2/ breeders' rights

3/ orphan drugs

4/ data and market exclusivity

5/ copyrighted software

t is this last category that offers interesting perspectives for the many IT companies. Also software developed for the improvement of internal business and production processes may be eligible for the deduction.

The deduction amounts to 85% of the qualifying net income, but surely there are some important conditions to consider:

  • The software should be the result of a research or development project as defined for the exemption for withholding tax on wages;
  • The software has produced no income before July 1st, 2016;
  • The deduction is limited if the software was only partially developed by the company.

Furthermore, for the application of this tax deduction, it is crucial to be able to submit corresponding evidence : convincing data and related documentation, both in terms of income and expenditure.

Of course, our office can guide you through these administrative obligations.

Don't miss this opportunity!