Evaluation of R&D relief and Patent Box scheme in the UK and Belgium |

Content 1. Introduction 1 2. UK’s Research and development relief 1 2.1 definition and schemes 1 2.1.1 Small or medium-sized enterprise (SME) scheme 1 2.1.2 Large company schemes 2 2.2 Qualifications 2 2.3 Consultation and appraisement 3 2.3.1 Equity 3 2.3.2 Externalities 3 2.3.3 Further evaluation 4 3. UK’s Patent Box scheme 4 3.1 Definition and Objective 4 3.2 When and how to claim 5 3.3 Qualification 5 3.3.1 Patent Box 6 3.3.2 Qualified Income 6 3.4 Consultation and appraisement 6 3.4.1 Equity 6 3.4.2 Efficiency 7 3.4.3 Further-Evaluation 7 4. Belgium’s Research and Development relief 8 4.1 Nature of incentives 8 4.1.1 Super deduction 8 4.1.2 Notional Interest Deduction (NID) 8 4.1.3 Income tax withholding incentives 8 4.1.4 Incentives for staff 9 4.2 Compare and contrast with UK R&D relief 9 4.2.1 Tax Deduction 9 4.2.2 Notional interest deduction 10 4.2.3 Wage Tax Exemption (WTE) 10 5. Belgium’s Patent Box scheme 11 5.1 Definition and Objective 11 5.2 Compare and Contrast with UK Patent Box scheme 11 5.2.1 Effective Tax Rate 13 5.2.2 Qualified IP rights 13 6. Conclusion 14 7. Bibliography 15

1. Introduction
Under the impact of globalization and revolutions in knowledge and technology fields, innovation, which could widen the employment base and enhance national competitive strength, is desperately required nowadays. Therefore, most governments try to motivate innovation through tax incentives on companies’ R&D activities. This essay will first discuss the UK tax policies of “Research & Development” and the “Patent Box” Schemes with review of various commentaries. The second part will