Research and Development (Promotion) Act WBSO
The tax incentive scheme Research and Development (Promotion) Act (Wet Bevordering Speur- en Ontwikkelingswerk, WBSO) compensates wage costs and other costs and expenses for development of products, processes, software as well as technical scientific research. Would you like to decrease your financial burden from R&D projects and do you, as a company, carry out the R&D activities yourself? Then the WBSO scheme could be of interest for you.
Tax allowances offered by the WBSO
The tax scheme is accessible for every entrepreneur in the Netherlands, regardless of the company’s size or sector and it aims to promote technical development within the Dutch business and industry. In order to qualify for a tax reduction under the WBSO scheme, projects must relate to research into or development of technically new products, processes or software, or parts thereof. The tax scheme implies that you will pay less income tax and national insurance contributions. The said tax of the WBSO is calculated on the basis of the total wage costs for research and development plus other costs and expenses. Self-employed people are entitled to a fixed allowance for research and development.
The application period for WBSO subsidies is flexible. You can continuously submit an application for subsidy. You can apply for a WBSO subsidy four times a year for a period of at least three months up to a maximum of twelve months.
WBSO in 2021
WBSO will be set off as a reduction on the wage taxes and national insurance contributions to be paid. The reduction for 2021 is as follows:
- The subsidy percentage for payroll tax payers for the first € 350,000 in R&D costs is 40%, for starters this percentage is 50%.
- For all R&D costs above €350,000, a subsidy percentage of 16% applies.
- For self-employed entrepreneurs, a maximum allowance of € 13,188 applies.
- Start-ups can receive an extra tax allowance of € 6,598.
In 2021, the available budget for the WBSO scheme is € 1,438 million..
Innovation box and WBSO
An R&D statement does not only give a right to reduction of the wage tax to be paid. Subject to certain conditions, you can use this statement also for the innovation box. The innovation box is a fiscal facility with which the government taxes profits from innovation at a lower rate. For innovative entrepreneurs, this can result in a significant tax advantage.
If you wish to use the innovation box, you can choose from two options: the standard innovation box or the innovation box fixed sum. What tax scheme is the most beneficial for you depends on various factors and differs per company. Our experts will be happy to advise you on this.
Do you wish to know more?
Would you like to receive more information about the Research and Development (Promotion) Act and how you can make maximum use of this subsidy? Please contact Manja Oude Middendorp, consultant innovation, on 073-6465475 or sent Manja an email. She will be happy to advise you about the possibilities and conditions of a successful application for subsidies.