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Increased rates for investment deduction and R&D tax credit

The tax authorities have just published the percentages applicable for the investment deduction relating to investments of tax year 2024.

Due to inflation, these rates increased significantly, reinforcing the interest for applying the investment deduction or the R&D tax credit, in particular for SMEs.

The percentage of the one-off deduction for R&D or investments in patents rises from 13.5% (tax year 2023) to 20.5% (tax year 2024).

The percentage of the spread deduction for R&D investment increases from 20.5% (tax year 2023) to 27.5% (tax year 2024).

These increases also apply to the calculation of the R&D tax credit.

For ordinary investments by SMEs, the rate remains at 8%.  As a reminder, the rate had been temporarily raised to 25% for investments acquired or set up between March 12, 2020 and December 31, 2022.

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