Copyright regime once again available to the IT sector

Copyright regime extended to software again

Up to and including income year 2023, many IT companies made use of the favourable tax regime for copyright income to partially remunerate software developers through copyright payments. In 2024, the scope of this regime was significantly restricted, largely excluding the IT sector.

The recent legislative amendment reverses this restriction. Companies can once again partially remunerate their software developers through copyright payments, provided that the standard copyright conditions are met.

The amendment will also apply retroactively from 1 January 2026.

Clarification of the conditions for application

An important aspect of the reform concerns the interpretation of the exploitation criteria.

Minister of Finance Jan Jambon has explicitly confirmed that the transfer or licensing of copyrights for the purpose of communication to the public, public performance or presentation, or reproduction should be regarded as separate and equivalent criteria. They should therefore not be interpreted cumulatively.

This interpretation significantly broadens the scope of the regime. As a result, software developed for internal use or as a bespoke solution for one specific client may also qualify for the favourable copyright tax regime.

No complete return to the previous regime

The reform does not, however, mean a complete return to the previous regime.

The flat-rate deduction of expenses of 50% and 25% will be abolished for taxpayers who do not hold an arts work certificate. In practice, this means that the copyright regime for software developers is slightly less advantageous than it was before the 2024 reform.

The importance of correct application

Although the scope of the copyright regime is being expanded again, applying it correctly remains crucial. Particular attention should be paid to:

• copyright protection (originality and concrete form);

• the contractual transfer or licensing of copyrights;

• determining the copyright remuneration;

• the correct tax treatment.

Would you like greater certainty in advance about the application of copyright remuneration? You may consider applying for a tax ruling.

Opportunities

The reform once again creates opportunities for companies in the IT sector to make use of the copyright regime. However, a thorough analysis and correct implementation remain essential to make optimal use of the benefits while limiting potential tax risks.

Do you have questions about what this could mean for your company? Our specialists will explore the possibilities with you and guide you through the correct implementation.