Important Policy Change
Belgium’s IT sector has just received a significant boost. From 1 January 2026, the favourable tax regime for income from copyrights will once again apply to software developers and other IT professionals. This is a big turnaround. In 2023, the government removed access to this scheme for IT, arguing that software development was no longer to be considered a ‘creative work’ for tax purposes. That decision had serious consequences:
- Companies had to rethink their remuneration packages:Many IT firms had used the copyright regime to offer more attractive net salaries. Without it, they suddenly faced higher costs or had to reduce take-home pay. Several companies even left Belgium because of this sudden change.
- Talent market suffered: In a sector where the ‘war for talent’ is already quite fierce, Belgium risked losing ground to international competitors offering better net rewards.
- Employees lost financial benefits: Developers and other IT staff saw their net income shrink, often without an increase in gross pay to compensate.
By reintroducing the regime in 2026, the government hopes to restore stability and competitiveness. This time, the scheme is explicitly written into the Coalition Agreement, giving businesses more confidence that it will not be overturned again in the short term.
What Is the Copyright Regime?
In simple terms, the regime allows creators to have part of their income taxed more lightly if it comes from the transfer of copyright on their own creative work:
- Instead of being taxed as regular salary (with progressive tax rates up to 50% plus social security), this portion is taxed at a flat 15% withholding tax.
- Royalty income can also benefit from a lump-sum expense deductionof 50% (low amounts) or 25% (mid amounts) before being taxed at a flat 15%.
- There is a ceiling: only a maximum amount of €75,000 per year (indexed) can qualify. Beyond that, income is taxed as normal salary or business income.
- To avoid abuse, only 30% of a total salary package can generally be structured as copyright income.
For years, this was a popular tool in IT, because basically any type of software was recognized as a creative work eligible for copyright protection and the royalty scheme.
What Happened in 2023
In 2023, reforms drastically narrowed the definition of qualifying works. Software programs were explicitly excluded, a decision later confirmed by the Belgian Constitutional Court. The result:
- Programmers and developers lost access: Even though their work is original and creative, the law no longer recognized it for tax purposes.
- Other digital creators stayed in: Professions like web designers, video makers, and game artists could still use the beneficial regime.
The IT sector pushed back, arguing that excluding software ignored reality and undermined competitiveness.
What Will Change in 2026?
From 2026, software will once again be recognized as eligible for the copyright regime. The law will specifically bring back software and computer programs as qualifying works. However, not everything returns:
- Databases remain excluded, as before.
- The law emphasizes that only programs resulting from ‘the author’s own intellectual creation’ count — meaning there must be a genuine element of originality.
For most software developers, this should normally cover their work, since writing code usually involves creative problem-solving and unique solutions.
Key Conditions Explained
- Exploitation requirement: Software qualifies if it is created with the intention of being used or commercialized—whether as SaaS, packaged software, or internal tools—even if parts of the code are ultimately not used.
- Public use vs. reproduction: The law accepts both public release and reproduction as grounds for qualification, meaning software can count whether widely distributed or used internally, though much depends on how the tax authority applies this in practice.
- Limits and ratios:Copyright income is taxed at 15% up to €75,000 per year, capped at 30% of total pay, and employers must properly document the share of creative tasks in each role.
- Employees and self-employed: The regime is open not only to employees, but also to self-employed individuals: contractors may transfer their rights to an independent third party for further exploitation; and directors may transfer the rights to their own company.
Practical Experience Since 2023
Although software was excluded in 2023, rulings from the tax administration give insight into how the rules are applied:
- Rulings often cap copyright income at 25% of total pay, lower than the legal threshold of 30%.
- The Ruling Office checks carefully how much of an employee’s time is spent on creative vs. routine and other tasks (creativity coefficient), which further reduces the eligible amount.
- Retroactive application is now possible: some rulings allowed reclassification of past income as copyright, which is helpful when dealing with long approval processes, as is usually the case with the Ruling Office.
These trends suggest that while the law is generous in theory, its practical application is strict.
What This Means for IT Professionals
For employers:
- This regime restores a powerful tool to attract and retain talent in Belgium’s competitive IT job market.
- Remuneration policies need to be carefully reviewed again, integrating copyright income alongside regular wages without relying on it as the sole benefit.
- Early preparation will be crucial to align with the rules and avoid disputes, potentially applying for an advance tax decision or ruling from the competent authorities.
For employees:
- Developers and software engineers can look forward to higher net pay once again.
- Not all roles will qualify equally — creativity and originality must be demonstrated.
- Transparency from employers about how copyright income is calculated will matter, especially when applying for a ruling or in case of a tax audit.
Open Questions
Even with the reintroduction, several uncertainties remain:
- Will the authorities accept that internal software or tailor-made client solutions count, or will they only accept software offered to the wider public?
- Will the 25% cap used in rulings continue, or will the law’s 30% be applied more generously?
- How will the administration define ‘creative contribution’ for IT roles that mix development with maintenance, support, or analysis?
The Ruling Office’s interpretations will likely shape how accessible the regime really is for IT professionals. Once again, the Ruling Office will play a (unintended) crucial role: their interpretation will be decisive for the concrete application of the copyright regime in the IT sector.
Conclusion
The reintroduction of the copyright regime for IT is a major win for software developers and their employers. It promises to restore Belgium’s competitive edge in the digital economy and give professionals back a valuable tax benefit.
But the devil is in the details; success will depend on how consistently and flexibly the rules are applied in practice, especially for internal projects and one-off solutions.
After the disruption of 2023, what the sector now needs most is stability. If the Belgian Government can deliver that, the regime will finally become the long-term (tax planning) tool it was meant to be.