IP Reward for software activities: key ruling guidance issued

Ruling Commission Publishes Additional Clarifications on Software Copyright Remuneration

Following the reform of the personal income tax rules, software and computer programs are back in scope of the Belgian copyright regime as from 1 January 2026. While the legislative changes generated significant interest within the technology sector, many taxpayers were awaiting clarification on how the Belgian Ruling Commission ("Dienst Voorafgaande Beslissingen" / "Service des Décisions Anticipées") would approach ruling requests under the revised framework.

In a recently published communication, the Ruling Commission confirms both its approach to the assessment of such requests and the period during which rulings may still provide certainty for remuneration granted from 2026 onwards.
 

A detailed case-by-case assessment

The Ruling Commission notes that it has observed a substantial increase in ruling requests from the IT sector following the announcement of the legislative reform.

At the same time, the Commission emphasizes that the extension of the regime to computer programs does not imply that all software-related remuneration will automatically qualify for the favorable tax treatment.

According to the Ruling Commission, each request will continue to be assessed individually and must satisfy all conditions contained in article 17, §1, 5° of the Belgian Income Tax Code.

The analysis will therefore not be limited to the legal qualification of the intellectual property rights involved, but will also consider:

• the originality of the underlying works;
• the existence of an effective transfer or license of rights;
• the manner in which the rights are actually exploited or used;
• the economic reality of the exploitation;
• the valuation methodology used to determine the copyright remuneration.

The Commission expressly notes that valuation approaches applied in other sectors cannot automatically be transposed to software-related activities without further analysis. Each file will be reviewed in light of its own facts and circumstances.
 

Additional time for ruling applications

Perhaps the most important practical clarification concerns the timing of ruling applications.

To safeguard legal certainty and allow sufficient time for the analysis of these new types of requests, the Ruling Commission confirms that rulings delivered no later than 30 June 2027 may still cover copyright remuneration granted as from 1 January 2026, provided all legal conditions are met.

This announcement provides welcome certainty for companies that may require additional time to prepare and submit a ruling request. It is also particularly relevant considering the expected volume of applications and the limited resources currently available to the Ruling Commission.
 

Practical questions remain

While the communication clarifies the timing within which rulings may be obtained, several practical implementation questions remain unanswered.
 

Income tax return considerations

The confirmation that rulings issued until 30 June 2027 may still cover remuneration granted from 1 January 2026 raises questions regarding the interaction with personal income tax filing obligations.

Depending on when a ruling is obtained and on the applicable filing deadlines, the relevant income tax returns and income reporting obligations may already have been prepared or completed before a final ruling is issued. The communication does not clarify how taxpayers and employers should address situations where the final ruling becomes available only after such reporting obligations have been fulfilled.
 

Valuation remains a key focus area

The communication also confirms that the economic valuation of copyright remuneration will remain an important element of the ruling review process.

Taxpayers should therefore expect particular attention not only to the methodology used to determine the remuneration but also to the supporting economic rationale and the link between the remuneration and the actual exploitation of the relevant intellectual property rights.
 

Early preparation is key

While the possibility to obtain a ruling up to 30 June 2027 provides additional flexibility, taxpayers should not interpret this deadline as an invitation to postpone the preparation of their files. Given the anticipated volume of requests and the case-by-case nature of the review process, taxpayers considering the regime may wish to start preparing supporting documentation and valuation analyses well in advance.
 

What should companies do now?

Although the regime applies to eligible remuneration granted as from 1 January 2026, companies considering the application of the regime would be well advised to start preparing before submitting a ruling request.

Should you wish to discuss this topic further, please feel free to reach out. We would be happy to provide additional guidance and insights.