Copyright Benefits for IT Professionals Are Back: What Does This Mean for Your SME?
September 2026 - Starting in 2026, software developers can once again take advantage of the tax-friendly copyright regime. This once again offers SMEs in the IT sector and other companies with creative software profiles opportunities to structure compensation in a more tax-efficient manner. However, you must be careful to apply this regulation correctly.
Software Reinstated Under the Copyright Regime
Until the end of 2022, software developers could, under certain conditions, receive a portion of their compensation as copyright royalties. However, the reform that took effect in 2023 excluded computer programs. As a result, software developers were removed from the tax regime, while certain other digital professions remained eligible.
The federal law of July 10, 2026, reverses that exclusion. Computer programs have once again been included within the scope of the regime. The regulation applies retroactively as of January 1, 2026.
This may be relevant for, among others:
software developers and software engineers
software architects and DevOps engineers
certain UX/UI designers
technical writers
other employees who contribute to an original copyrighted work
Please note: it is not the job title, but the actual activities that are decisive in this regard.
Internal software may also be eligible
A key point of consideration was whether software used exclusively internally could fall under the regime. After all, the law requires that copyrights be transferred to a third party or licensed for the purpose of certain forms of exploitation.
According to the explanatory notes provided by Minister of Finance Jan Jambon, these forms of exploitation should be considered alternatives. Reproduction, therefore, may suffice on its own. Loading, executing, displaying, transmitting, or storing software is considered reproduction in this context. As a result, internal applications, custom-developed software, and software developed for a specific client may, in principle, also qualify, provided that the other conditions are met.
Not every software creation is automatically protected by copyright
The reintroduction of this provision does not mean that, as an employer, you can simply designate a fixed percentage of wages as copyright royalties. There must be an original, creative work that is protected by copyright. Furthermore, the rights must actually be transferred or licensed, and the compensation must be economically justified.
It is therefore important for your SME to determine in advance:
which employees actually create creative software or other protected works
what portion of their work relates to this
exactly which rights are transferred or licensed
how the compensation is calculated
what documentation can substantiate the creations and rights
30 percent is not an automatic exemption
Furthermore, the tax-advantaged regime has clear limits. For the 2026 tax year, the absolute limit is 77,220 euros for the 2027 tax assessment year. When copyrights are related to a service rendered, a relative limit of up to 30 percent of the total compensation also applies. However, this percentage is not an automatically applicable flat rate: the compensation must also be in line with market conditions and economically justified.
An additional average limit may result in the situation where, if the threshold is exceeded over the four preceding taxable periods in the assessment year, not even a portion of the income can be treated as ordinary income.
Contracts and Documentation in Order
Anyone wishing to implement this system must also adapt the legal framework. For employees, the employment contract must clearly state that the copyrights to the works created are transferred to or licensed to the employer. The method for determining compensation must also be specified.
A sound approach consists of:
an analysis of the relevant job functions and creative output
an inventory of the relevant software and other creations
amended contractual provisions regarding intellectual property
technical and legal documentation
a well-founded valuation method for copyrights
A fixed allocation formula for everyone is not recommended in this context. The valuation must be tailored to the specific situation and the actual proportion of creative activities.
Don’t Forget Social Security
From a tax perspective, the regulation has been reinstated, but there is still uncertainty regarding social security law. According to the information provided, the Social Security Administration (RSZ) guidelines have not yet been updated to reflect the reinstatement of computer programs. As an employer, you would therefore be wise to proceed with caution.
