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How does the current tax regime work?
If you create an original work, you can assign or license the rights to that work. This may include texts, photographs, illustrations, music, audiovisual works, graphic designs or software code. Subject to certain conditions, the remuneration you receive may be treated as income from copyright royalties.
At present, copyright royalties offer three main tax benefits:
· they are generally subject to 15% withholding tax;
· a flat-rate expense deduction applies, meaning that the full amount isn’t subject to tax;
· the remuneration isn’t taxed as professional income, provided that the statutory limits are not exceeded.
For the 2026 tax year, the indexed gross threshold is €77,220. Up to this amount, copyright royalties can, subject to certain conditions, be treated as movable income. Any amount above this threshold is in principle taxed as professional income.
In addition, the 30/70 rule also applies. Where copyright royalties are remunerated together with services performed, the copyright royalty remuneration may in principle not exceed 30% of the total remuneration. At least 70% must therefore relate to the services provided.
What are the change from the 2026 tax year onwards?
The main change concerns the flat-rate expense deduction.
Up to and including the 2025 tax year, this flat-rate deduction can be applied if you receive copyright royalties and meet the conditions of the copyright regime. In this case, it is not necessary to prove which expenses were incurred for each individual cost.
From the 2026 tax year onwards, this will change. The flat-rate deduction for expenses can then only be applied if, at the time of payment or granting of the royalties, you hold a standard artwork certificate or an artwork certificate plus.
If you do not hold a standard artwork certificate or an artwork certificate plus you can still receive copyright royalties, but you will in principle no longer be entitled to the flat-rate expense deduction. You will then only be able to deduct those actual expenses that you can effectively prove.
Why is this important?
The difference lies in the effective tax burden.
Today, the flat-rate expense deduction reduces the taxable base. This means that you are not taxed on the full amount of your copyright royalties. From 2026 onwards, this benefit no longer applies to those who do not hold an artwork certificate.
A simple example: if you receive copyright royalties without an artwork certificate, the remuneration may still fall under the movable income regime. However, if you cannot demonstrate any actual expenses, the full amount will be subject to 15% withholding tax. As a result, you will pay more tax than if you were still entitled to the flat-rate expense deduction.
The regime therefore remains in place but becomes less favourable for those who do not hold a certificate.
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What is an artwork certificate?
An artwork certificate is an official recognition of a professional artistic practice. It is granted by the Artwork Commission and is intended for individuals who are professionally active in the arts.
For the flat-rate expense deduction on copyright royalties, the relevant certificates are the standard artwork certificate and the artwork certificate plus. A starter certificate doesn’t appear to be sufficient for this purpose.
Important: an artwork certificate is not a general tax exemption. The certificate must relate to the activity from which the copyright royalties arise. For example, if you hold a certificate for a specific artistic practice, it cannot simply be used for completely different activities.
Who will feel the impact most?
The change is particularly relevant for those who receive copyright royalties but do not hold an artwork certificate or are unlikely to qualify for one.
Examples include:
· copywriters;
· designers;
· marketers;
· photographers;
· journalists;
· consultants;
· speakers;
· other professionals creating copyright-protected works.
Not every creative or intellectual activity automatically qualifies for an artwork certificate. A work may be protected by copyright even though the creator falls outside the scope of the artwork certificate.
This is precisely where the distinction lies: the copyright regime and the artwork certificate are two separate matters. It is therefore possible to create copyright-protected works without being entitled to an artwork certificate.
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What are the consequences if you do not have an artwork certificate?
If you do not hold a standard artwork certificate or an artwork certificate plus, the main change is the fact that you can still have copyright royalties treated as movable income for tax purposes, provided that you meet the conditions, but in principle flat-rate expenses can no longer be deducted. As a result, the taxable base will be higher.
In order to still deduct costs, you will need to prove your actual expenses. This requires more administration. Think of invoices, proof of payment or other documents demonstrating that the expenses are directly related to the creation, exploitation or transfer of your work.
In practice, this will not always be straightforward. Many authors or self-employed individuals don’t have clear project-related expenses or may find it difficult to demonstrate them separately. As a result, the tax benefit may be lower than before.
What does this mean for employers and companies?
Employers and companies paying copyright royalties to employees, directors or self-employed contractors must also review their arrangements.
A copyright royalty payment cannot simply be used as a general salary optimisation tool. There must be actual copyright-protected works involved, as well as a proper assignment or licensing of rights.
In addition, the 30/70 rule also remains important. Where copyright royalties are remunerated together with services performed, the copyright royalty remuneration may in principle not exceed 30% of the total remuneration. In addition, the regular salary or remuneration for services rendered must remain in line with market rates.
Subjection to certain conditions, employees can also claim an exemption from social security contributions on copyright royalty payments. However, a 30% limit of the total remuneration package applies here as well. According to VLAIO, this social security exemption currently doesn’t apply to the IT sector.
So what is the next step?
Do you receive or pay copyright royalties? If so, it is advisable to have your arrangement reviewed before 2026.
The following questions are particularly important:
· Do you still fall under the copyright tax regime?
· Are you eligible for a standard artwork certificate or an artwork certificate plus?
· Has your copyright royalty remuneration been calculated correctly?
· Do you remain within the gross threshold of €77,220?
· Do you comply with the 30/70 rule?
· Can you prove your actual expenses if you do not hold an artwork certificate?
· Are your contracts, invoices and supporting documents sufficiently clear?
The conclusion is straightforward: copyright royalties remain tax-efficient, but from 2026 onwards the benefit will be reduced for those who do not hold an artwork certificate. The flat-rate expense deduction is what makes the difference. Those without a certificate will need to document more carefully which expenses were actually incurred and verify whether the regime still provides sufficient benefit.
