Are original works created within your company, by yourself and/or your employees? As soon as there are copyrighted works, you can benefit from a favorable tax arrangement.
Optimizing Copyrights for Tax Purposes through compensation
Those who create original creations within your company will transfer the copyrights to the company. In return, the person in question receives a ‘copyright compensation’. Your company can benefit from a tax advantage on this compensation.
What is the tax advantage for copyright compensation? Up to an (annually) indexed maximum amount, you can enjoy a favorable rate of 15% withholding tax after deducting an attractive lump-sum expense.
Can you immediately benefit from tax advantage on copyrights?
Yes, in principle, a company can proactively use this favorable arrangement. However, there is a caveat, as the tax administration is very strict in its approach, potentially resulting in unpleasant back payments.
Therefore, we recommend applying for a ruling in advance from the Advance Decision Service of the FPS Finance. To request this ruling, it is best to rely on an expert who guides you through the process and significantly increases the chances of success.
How do we help concretely?
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Analysis of tax possibilities
We examine whether and to what extent activities within your company may qualify for the favorable tax rate for copyrights.
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Request for official ruling or letter to the tax authorities
We assist you with the pre-filing request and the ruling request from the Advance Decision Service.
During this process, we take the procedure off your hands, so you don’t have to worry about it. Of course, we keep you informed throughout the entire procedure, until the final decision of the Advance Decision Service.
If you choose not to request a ruling, we will provide you with advice intended for the tax authorities. With this, you can justify the choice for the payment as a copyright compensation (without a ruling) within your company in case of an audit.
Adjustment of current employment and/or collaboration agreements
We adapt your current employment and/or collaboration agreements so that the copyright compensation and transfer of copyright (or license) are correctly and comprehensively included.
How long does it take to optimize copyrights for tax purposes?
If you choose to work through an official ruling, you should expect a lead time of 3 months to 1 year.
The duration depends on the speed at which the Advance Decision Service can process the application.
How much does it cost?
The price varies depending on the size of your company and whether or not you opt for an official ruling application.
The total cost for the process with a ruling will therefore vary between 5,000 and 10,000 euros (excluding VAT and costs).
Without a ruling, the price varies between 2,500 and 5,000 euros (excluding VAT and costs).
Variable price More info about our prices