Flying cars, 3D metal printers, energy-generating dance floors and sustainable prams. Just a few examples of the innovative products developed by Dutch entrepreneurs thanks to the WBSO R&D tax credit.
If your business carries out research and/or development projects you may be able to make use of the research and development tax credit: WBSO.
Each year, the Dutch government allocates the WBSO budget as part of the Tax Plan. For 2020, the WBSO budget is €1,281 million. If the available budget is over- or underused, it is compensated 2 years later, for instance through adjustment of the parameters.
The WBSO R&D tax credit offers support for 2 different types of projects:
- Development project
This category covers the development of technically new physical products, physical production processes or software (or parts thereof).
- Technical-scientific research
This category covers explanatory research of a technical nature.
You may apply for the WBSO R&D tax credit for:
- R&D activities carried out by you and/or your employees;
- costs and expenses you incur while carrying out your R&D project.
WBSO tax credit benefit
Your WBSO tax credit benefit depends on the legal form of your business. If you are an individual entrepreneur, you will be granted a fixed deduction. Read more about the calculation of your tax credit benefit.
Tax credit benefits for startups
If your company is a startup and you received an R&D declaration granting a benefit for new businesses, you may be able to make use of the customary salary scheme or the share option programme for startups. Read more about the tax credit benefits for startups.
Apply for WBSO
You may apply the WBSO R&D tax credit at any time, but only for future activities. This means you must always submit an application in advance. Your application should include a description of a single or multiple R&D projects. These can be new projects or projects for which you have applied for WBSO in the past.
Read more about the WBSO application process.
If you have applied for a WBSO R&D tax credit, you will be required to keep an administration. A proper administration will provide simple and clear insights into the nature, content and progress of the R&D activities carried out for each project. As well as the number of R&D hours spent on the project.
Read more about keeping a WBSO administration.
As an R&D withholding agent, you must always notify the Netherlands Enterprise Agency of the number of hours you have spent on R&D during the year and, if applicable, the costs and expenses you incurred. As an individual entrepreneur, you must always report if you have spent fewer than 500 hours on R&D.
Read more about the WBSO statement.
For more information about WBSO, please consult the Manual, Quickscan and infosheet.