R&D tax credit (WBSO)

The R&D Promotion Act (Wet Bevordering Speur- en Ontwikkelingswerk, WBSO) focuses on businesses in the Netherlands that perform R&D work. This tax facility is designed for the following groups:

• Entrepreneurs whose employees perform R&D work may be permitted to pay less payroll tax in respect of these employees.
• Non-entrepreneurs whose employees perform R&D work financed by a Dutch business, too, may be able to pay less payroll tax in respect of their employees.
• Self-employed persons who spend at least 500 hours per calendar year performing R&D work may be able to claim a fixed annual income tax deduction.

In addition, new businesses are eligible for an additional allowance.

Conditions

In order to be eligible for this facility, you must satisfy conditions which include the following:

• Your R&D activities focus on the development of technologically innovative products, processes or software, on technical research or on the analysis of the technical feasibility of your R&D work.
• You maintain records of your R&D work from the start. These records provide insight into the type of activities being pursued and their progress.
• You pay payroll tax in respect of your employees to the Dutch Tax and Customs Administration.
• The R&D activities are carried out in the EU.

How to apply

WBSO applications can be submitted throughout the year to NL Innovation, which is an agency of the Ministry of Economic Affairs, Agriculture and Innovation.