Description

The purpose of the incentive is to promote corporate R&D work through a tax deduction for R&D wage costs.

Contribution

• The R&D allowance takes the form of deductions of wage tax and social-insurance contributions. As a rule, the R&D allowance amounts to 42% of the first EUR 110,000 of the wage bill for R&D per calendar year, and 18% of the remaining R&D wage bill. The maximum allowance per calendar year is EUR 14 mln. for each company (or corporate entity).
• The R&D allowance for start-ups amounts to 60% of the first EUR 110,000 of the wage bill for R&D per calendar year, and 14% of the remaining R&D wage bill. The maximum allowance per calendar year is EUR 14 mln. for each company (or corporate entity).

The above amounts are valid for the year 2012 only. 

Self employed entrepreneurs spending at least 500 hours on R&D within one calendar year, are eligible for an income tax deduction as well:

Tax deduction for self-employed persons amounts to EUR 12,310. For a self-employed techno starter, the tax reduction is EUR 18,467

Conditions

R&D work is defined as systematically organized activities, performed within the EU, related directly and exclusively to:

• technical scientific research
• the development of:
• physical products
• parts of physical products
• physical production processes
• parts of physical production processes
• software
• software components

The R&D work definition excludes:

• Feasibility studies
• software upgrading; modifying software for different hardware or software platforms
• development of services
• routine activities
• market research
• organizational or administrative work
• policy and strategy studies
• adaptation or deployment of purchased goods
• quality control and assurance
• adaptation or implementation of existing technology
• pilot plants on production scale with commercial value

Who is the target group?

• Businesses with employees who perform R&D.
• Non-commercial organizations with employees who conduct R&D on the instructions and at the behest of another business, an alliance of businesses, or a product or industrial board. The R&D allowance for non-commercial organizations is expected to be passed on to the customer (business) in the form of a reduction in the amounts invoiced.
• Self-employed persons operating a company who are entitled to an income tax deduction for self-employment, provided they carry out research and development activities themselves for at least 500 hours per year.

Information

The facility can be requested via i) e-loket via Agentschap NL or ii) an application form available from Agentschap NL. Applications can be submitted three times a year. The activities for which an application is submitted must be carried out in the period to which the application relates. 

Further information is available on the website of Agentschap NL: www.agentschapnl.nl/wbso 

What we can do for you?

If you are interested in our services, please feel free to contact us via e-mail or to call us at our offices on the number +31 (0)10 2010466 for our office in Rotterdam or on the number + 31 (0)20 5709440 for our office in Amsterdam.

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