Favorable tax regime for copyright income in the IT sector reintroduced

The favorable tax regime for copyright income is being reintroduced for the IT sector, with retroactive effect as of 1 January 2026^[1]. This offers IT companies the opportunity to optimize their remuneration policies and obtain greater legal certainty once again.

Under this regime, part of the IT professionals’ remuneration is qualified as movable income rather than (primarily) professional income. This movable income is subject to a flat tax rate of 15%, instead of the progressive personal income tax rates (up to 50%) and, in principle, social security contributions.

The reintroduction is currently still subject to Parliamentary approval.

The former lump sum cost deduction of 25% to 50% will henceforth only be available to taxpayers holding an artwork certificate. IT professionals will generally not meet this condition and will therefore only be able to claim actual expenses.

Nevertheless, the copyright regime remains highly attractive. For example: when 20% of the gross base remuneration is qualified as copyright income, that results in the following benefit:

• An employee with a monthly salary of EUR 3,000 benefits from a net increase of EUR 177 per month.
• For a monthly salary of EUR 6,000, the net benefit increases to EUR 462 per month.

A comprehensive simulation remains essential to accurately assess both the net impact for employees and the overall employer cost.

It is crucial to assess the remuneration policy for IT profiles in its entirety. The impact of IP-benefits extends beyond the (para)fiscal treatment of compensation alone, and a well-thought-out revision of the remuneration package requires sufficient preparation time. Some key questions to consider:

• Should copyright income be granted on top of the existing salary package, or integrated within the current budget?
• Which functions qualify, and what portion of their working time is spent on creative activities?
• What is the impact on other salary components and benefits?

The new legislation still leaves room for interpretation. Therefore, obtaining a tax ruling remains recommended.

KPMG can support with the implementation of this regime both from a tax and employment law perspective, including analyzing existing remuneration packages, simulating the impact on salaries and employment costs, amending employment agreements, and preparing and submitting requests for tax rulings. Please do not hesitate to contact us for further assistance.

1. _{For withholding tax purposes, the past effects remain unchanged. The difference in tax burden will be settled at tax return level.}