Innovation box
21.04.2021Research & development (R&D) involves companies of all sizes. Dutch tax legislation allows such companies and entrepreneurs to qualify for tax breaks in the Innovation Box. The primary target audience for the benefits is IT, science and technology researchers and developers. We will help you figure out what is hidden under the terms WBSO and Innovation box in the Netherlands and whether your activity allows you to take advantage of the existing benefits.
What is an Innovation Box?
The Dutch Innovation Box is a comprehensive preferential tax regime that covers both income tax relief (effective, i.e. the effective rate falls to 9% on innovation income) and payroll and contribution tax relief for social insurance. The mode is available to companies resident in the Netherlands and Dutch private entrepreneurs (EMZ).
WBSO certificate
Obtaining a WBSO certificate is both a necessary step in the transition to the Innovation Box regime and an additional benefit: a taxpayer who acts as a tax agent (or EMZ for himself) and has this certificate has the right to deduct from the total amount of payroll tax a certain amount of the total base research and development (R&D) costs. This deduction is from 19.000 euros / year, but in principle it can be much higher.
How to get WBSO certification and upgrade to Innovation box
The mode is available for taxpayers who independently develop a product / provide a production process / create software or conduct scientific and technical research. The result should comply with the principles of novelty of the information technologies used or created and the independence of solving technical problems.
Evaluating and applying for the Dutch WBSO and Innovation box
If you think you fall under the WBSO and Innovation box, we will be happy to individually assess your activities and predict the amount of available benefits. Before applying for the WBSO and Innovation box, we will assess whether your design meets the established criteria. We will also help you figure out what conditions must be met to obtain a WBSO and reimburse your R&D costs. Next, we will prepare and accompany the application, and then we will help to administer and use the benefits provided by the WBSO and Innovation box.
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