WBSO: R&D tax credit
WBSO provides a tax credit for companies and self-employed individuals who engage in R&D work. In this context, R&D means technical/scientific research, developing technologically new products or production processes and developing technologically new software.
With the WBSO, companies can lower the wage costs of employees who are directly involved in R&D as well as deduct R&D expenditures such as material, tooling and external testing costs. A reduction in payroll tax or an increase in tax deductions available to those who are self-employed are available through the WBSO. Applications must be received at least one month prior to the start of the period for which the tax credit is required.
- The R&D activities must take place within your company by employees on your payroll.
- The R&D work must take place in the European Union.
- For each project the applicant must account for the R&D work done, including a specification of hours spent.
- The technological development must be new to your organisation and pose technical challenges.
Dutch employers and self-employed individual who are engaged in R&D work.
An application can be submitted up to three times a year. The application must be submitted at least one month prior to the period for which the tax credit is required.
- Reduction in payroll tax: for each calendar year, 32% of the first € 350,000.- of the total R&D-costs (technical hours and other costs/expenditures), and 16% of the remaining R&D-costs.
- Self-employed tax deduction: € 12,421.-.
- For “technostarters” (< 5 years) there is a special reduction of 40% (applied to the first € 350,000.-) or an additional self-employed tax deduction of € 6,245.-.
If you are interested in this tax credit or should you require further information, please do not hesitate to contact us at Hezelburcht.