Under the Act of 15 July 2026 reforming personal income tax, the legislator is once again reversing this exemption. More specifically, Article 17(1)(5) of the WIB 92 (Income Tax Code) is being amended so that the regime may once again apply to income relating to computer programs, such as code, scripts and software modules, provided, of course, that the other conditions of the regime are also met. This amendment comes into effect on 1 January 2026 and applies to income paid or allocated from that date onwards.
When are individuals eligible?
The copyright regime is designed to support natural persons who produce original and creative works. A number of essential conditions apply.
For example, there must be a creation that has been expressed in a concrete form. Ideas or concepts alone are not sufficient. In addition, the remuneration must actually be paid to a natural person, and the copyright must also be exploited, for example through a licence, assignment or right of use.
Tax treatment: income from movable property vs. earned income
A key advantage of the regime is that part of the remuneration is classified as income from movable property and is therefore not subject to the progressive rates of personal income tax and is exempt from social security contributions. This portion is taxed at a separate rate of 15%. However, in the case of the IT sector, account must be taken of the temporary mismatch with the NSSO, as explained below.
In order to benefit from this, a number of conditions must be met cumulatively:
- The copyright remuneration paid to an employee may not exceed 30% of the total remuneration package (the standard gross salary plus the copyright remuneration combined). The remainder is regarded as earned income.
- The four-year average remains applicable: gross income classified as copyright royalties must not exceed €77,220 (tax year 2027).
- Furthermore, this amount serves as an absolute ceiling: income in excess of €77,220 is taxed in full as earned income.
Flat-rate fees under pressure
The copyright regime provides for a flat-rate deduction for expenses (tax year 2027):
- A flat rate of 50% applies to amounts from €0.00 to €20,590.00
- A rate of 25% applies to amounts between €20,590.00 and €41,180.00
- No flat-rate allowance may be deducted for amounts above €41,180.00 (0%)
However, the new legislation makes the use of this flat-rate deduction for expenses for income paid or allocated from 1 January 2026 subject to an additional condition. After all, the taxpayer must hold either a standard artwork certificate or an ‘artwork certificate plus’. For most IT professionals, this will not be the case.
If the flat-rate allowance is consequently withdrawn, the taxable base increases. This may result in a smaller proportion of the remuneration actually being treated as income from movable property.
In practice, this timing may lead to unexpected tax consequences, particularly for taxpayers who are no longer eligible for the flat-rate allowance under the new regime.
Temporary mismatch with the NSSO
As far as social security law is concerned, the situation remains unclear for the time being. To date, the NSSO has continued to exclude computer programs from the scope of application. This creates a potential mismatch between the tax and social security treatment of income from copyright.
Although the reintroduction of the regime offers new prospects for the IT sector, it is clear from the above that its implementation is far from straightforward.
How can we help you?
Accurate classification and implementation require a thorough analysis. As your ‘trusted adviser’, we would be happy to support you in this process and in making the most of the opportunities available within the current legal framework.
