Do you make profit from innovative activities? If so, you may be able to use the innovation box (in Dutch). This is a special tariff box on your corporate tax return. This allows you to pay less corporate income tax on the profit of these innovative activities.
You pay the lower tax rate for all intangible assets you put in the innovation box. Intangible assets include, for example:
- research and development (R&D) costs
- patents or other intellectual property rights
When are you eligible?
You can apply the innovation box if you meet several requirements. The main requirements are:
- Your company is obliged to pay corporate income tax in the Netherlands.
- You did the research and development work yourself, and for your own account and risk.
- The profit you made from your intangible assets is higher than the threshold for the innovation box (in Dutch).
- You have obtained a research and development declaration (speur- en ontwikkelingsverklaring , S&O-verklaring) for your R&D work. You get this declaration if you use the WBSO (Wet Bevordering Speur- en Ontwikkelingswerk).
- If you are a larger taxpayer (in Dutch), you must have a patent or a patent application on your innovation in addition to the R&D declaration. There are some alternatives to this patent, such as a plant breeders' right or a licence for medicines.
- You meet the administrative requirements (in Dutch) for the innovation box.
Check all conditions for the innovation box (in Dutch).
How can you use the innovation box?
You can apply for the innovation box if you follow these steps. To apply, you select the innovation box when you file your corporate income tax return. You can also do this later, as long as the assessment for that year has not yet been finalised.