Personal Income Tax reform: Status update on the compensation for the transfer of copyrights

Extension of the scope to Book XI, title 6 of the Belgian Code of Economic Law and confirmation of entry into force as of 1 January 2026.
 

Introduction

Over the last years, a lot has been written about the Belgian special tax regime for the Compensation for the transfer of copyrights (hereafter: IP Reward).

Within the IT sector, the regime has undergone a turbulent evolution: as of 1 January 2023, software was fully excluded, but under the current draft personal income tax reform, the sector is expected to re-enter the regime as of 1 January 2026.

IP Reward has however continuously remained applicable since 2008 across numerous creative sectors, including copywriting, marketing, media and (graphic) design. The draft bill still requires final approval, but providing an updated overview is useful at this stage.
 

1. General eligibility conditions

To qualify for IP Reward, the following conditions must be met:

• Copyright protection: the work must be original and show personal creative input.
• Effective transfer or license: the economic rights must be transferred or licensed.
• Contractual arrangement: the transfer must be set out in a written and unambiguous contract.
• 30% rule: the IP remuneration may not exceed 30% of total remuneration (where a work component exists).
• Annual cap: IP remuneration must fall within the statutory maximum (€77,220 for income year 2026).
• Tax treatment: qualifying income is taxed at 15% withholding tax, increased with local surcharges.
   

2. Extension of the material scope

The draft bill extends the material scope, to include Book XI, title 6 of the Belgian Code of Economic Law, which specifically concerns computer programs.

This means that software, applications and digital programs—previously in scope before 2023 but explicitly excluded thereafter—will once again qualify as of 1 January 2026, provided all conditions are met.

This expansion restores clarity and legal certainty for software development, data engineering, digital creation and technology‑driven roles.
 

3. Personal scope – interpretation of legal conditions

There is currently no definitive clarification of the requirement that a work must be communicated to the public, publicly performed or reproduced.

Despite the fact that the draft bill (re)confirms a literal “or” interpretation, the effective interpretation remains uncertain.
 

4. Entry into force

The changes are still expected to retroactively enter into force on 1 January 2026.
 

5. Change in calculation method

As from 2026, the flat‑rate cost deduction will be abolished (except for holders of an artist’s certificate). As a result, the effective tax burden on copyright income increases to 15%, plus local surcharges.

The relevant legislative text has not yet been approved, so the previous deduction rules remain temporarily applicable.
 

6. Practical example

Below is an example illustrating the financial impact of allocating 20% IP Reward on a gross salary of €4,000.

(The calculation reflects the anticipated future situation in which the flat‑rate cost deduction disappears.)

7. Social security contributions

A social security exemption was introduced in 2023 for compensation for the transfer of copyrights for employees transferring copyrights under title 5 of book XI of the Belgian Code of Economic Law in case certain conditions were met.

This exemption is not linked to the tax legislation, although the general scope of application at the time used the same wording as the tax regime. It also referred exclusively to title 5, and thus only applies to copyrights and neighbouring rights, and in principle not to software, which is included in title 6 of book XI of the Belgian Code of Economic Law.

At the time of writing, there is no legislative change facilitating the social security exemption to title 6, and based on the information available to us, it does not appear to be the intention of the government to extend this exemption. As such, it appears that for software, this type of compensation will remain subject to social security contributions

Next steps

We continue to monitor the parliamentary approval process closely. Ruling requests under the new framework cannot yet be submitted; the Ruling Commission is awaiting the final legislative text.

However, employers wishing to apply the regime retroactively as of 1 January 2026 should already start their preparation:

• updating contractual provisions on copyright transfer;
• documenting digital/creative output;
• maintaining evidence of the creative nature of relevant roles;
• and identifying eligible profiles.

Timely preparation is crucial to avoid jeopardizing retroactive application.

In case you would require any assistance in this respect, please do not hesitate to reach out to us or to your dedicated person of contact.