R&D tax credit (WBSO)
Do you run a company in the Netherlands that carries out research and development work (Speur- en Ontwikkelingswerk, S&O or R&D)? You may be eligible for compensation of wage costs and additional costs under the WBSO scheme.
What is the WBSO scheme?
The WBSO R&D tax credit scheme is meant to stimulate innovation. With the WBSO part of your costs and expenses for R&D projects are compensated via you tax return.
Do you employ staff? Then the WBSO compensates part of your wage costs and expenses through the tax deduction for research and development (in Dutch). Are you a self-employed entrepreneur? You can deduct an (annually set) fixed amount for R&D when filing your income tax return. Startups are given extra compensation for R&D work.
When do you qualify for the WBSO?
If you want to apply for the WBSO R&D tax credit your company and your project have to meet certain requirements.
Eligible companies are:
- entrepreneurs who are subject to income tax and meet the Tax Administration’s hours criterion (in Dutch). They must spend at least 500 hours on R&D per calendar year.
- entrepreneurs who are subject to income tax and who have employees who do research and development work
- companies subject to corporate income tax (such as private and public limited companies) with employees doing research and development work
Public knowledge institutions are not eligible for the WBSO.
Conditions for R&D projects
Your R&D project must meet several conditions, such as:
- you develop a product, production process, software programme or perform technical scientific research (TWO)
- your project develops a technically new product
- your research or development project is done within the EU
- you solve technical problems yourself or, in case of technical scientific research, you seek an explanation for a phenomenon
The Netherlands Enterprise Agency's (RVO) website offers more information on the conditions for the WBSO and lists WBSO publications.
To see if you are eligible for R&D tax credit, you can use the WBSO Quickscan. To find out how much tax credit you are entitled to, read more about the calculation of the tax credit benefit.
How to apply?
You can submit your application (in Dutch) to RVO using eHerkenning (eRecognition) (level 3). You can apply for R&D tax credit at any time. You must however always submit an application in advance. Read more about the WBSO application process.
For more information on the R&D tax credit (WBSO) see the Tax and Customs Administration's Payroll Tax Allowances.
If you have a Message Box account, you may want to receive your WBSO orders digitally.