New copyright reform: what's changing?

The new copyright (para-)tax regime, which has been in force since 1 January 2023, is causing quite a stir. On 11 May, Sylvie Dumortier and Justin Lennertz, Tax Partner and lawyer at Claeys & Engels, gave a conference at 500 Avenue Louise to explain it.

In 2008, copyright income represented a fairly attractive remuneration for many creators. However, over a year ago, this rule was changed, and tax benefits for artistic activities are now restricted. At a conference organised by BECI, Sylvie Dumortier and Justin Lennertz, respectively tax partner and lawyer at Claeys & Engels, discussed the new (para-)tax reform for copyright.

Return to the concept of copyright

‘The mere fact of creating a literary or artistic work gives rise to copyright over it,’ explains Sylvie Dumortier, Tax Partner at Claeys & Engels. However, her colleague and lawyer Justin Lennertz qualifies: ‘There is a difference between copyright and income. The former is consideration for a work produced, not remuneration for work done. This is what is known as income from movable assets: ‘It is a consideration obtained as a result of the transfer of a movable asset’, he continues. In other words, copyright concerns the fruit of a personal work.

Until 31 December 2022, income from movable assets was taxed at a rate of 15% if the amount in question was less than or equal to €73,070.  Otherwise, it was regarded (with a few exceptions) as professional remuneration.

What's changed

Whereas copyright used to apply to creative work and intellectual property, it now only applies to a certain type of income. From now on, income from movable assets will relate to literary or artistic works. Nevertheless, Sylvie Dumortier and Justin Lennertz warn of the conditions that now apply.

Firstly, ‘there is no copyright when the author or artist himself exploits or uses the economic rights he holds in his work’. Secondly, the creator must either ‘hold an arts worker's certificate’ or transfer his or her rights to a third party for use or public dissemination. The copyright cap is also changing, rising from 30% to 40% for 2024.