Innovation takes time and money. Fortunately, the government encourages entrepreneurship and innovation by providing tax schemes such as the WBSO and the Innovation Box. These allow you to reduce the costs of research and development significantly. Provided you apply the schemes correctly.
The WBSO reduces your labour costs, while the Innovation Box allows you to pay less tax on profits resulting from innovation. This leaves you more room to invest in the future. Without the proper guidance, you can easily miss out on these tax benefits, risk being refused, or be faced with additional taxes. The regulations are complex and are frequently subject to changes. For many business owners, it is challenging to demonstrate what does and does not fall under R&D.
We help entrepreneurs get the most out of these regulations. We analyse your projects, translate the technology into understandable terms for the RVO and the tax authorities, and ensure that your application is in order from a legal and fiscal standpoint. We combine knowledge of technology, tax legislation and your business model, so you can remain compliant and reap the rewards.
We guide the entire process. Starting with the analysis and application process, financial reporting, and dealing with the tax authorities. We make sure that the relevant projects are incorporated into the process, the administration is in order, and that use of the Innovation Box is justified from a fiscal standpoint. We are experts in technology and taxation.
Less tax burden, more room to invest in innovation, and peace of mind knowing you are fully compliant with the necessary rules and regulations. We ensure your innovations are set up as effectively as possible for tax purposes, in the present and future.
Contact one of our specialists for more information about the services we provide.
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The WBSO (Research and development promotion act) is a tax credit scheme provided by the Dutch government. It is designed to encourage companies to invest in research and development. Through this scheme, you can get a reduction on payroll taxes for employees involved in R&D initiatives, reducing your labour costs and making innovation more financially appealing. The application process goes through the Netherlands Enterprise Agency (RVO).
First, you determine which initiatives and activities are eligible for the scheme, and collect the necessary information. Then you submit your application digitally via the RVO eLoket (eDesk), with a clear description of the relevant R&D activities. After approval, you must keep accurate records of hours worked and costs incurred. A timely, complete application is important in order to make optimal use of this scheme.
The Innovation Box is a special tax scheme on corporate income tax that allows you to pay a reduced rate of 9 percent, instead of the standard rate of 25.8 percent, on profits that arise from innovation. This scheme is intended for companies that have produced their own intangible assets, such as (patented) product and process technology, software, and are in possession of a valid WBSO declaration. Only tax-paying companies are eligible for the scheme.
In order to apply the Innovation Box correctly, you must keep detailed financial records that clearly show the benefits arising from innovative activities and the associated costs. In practice, it is wise to consult with the tax authorities in advance to make clear agreements about how your business intends to apply the scheme in your specific situation.
To use the WBSO scheme, your business must be based in the Netherlands and be liable for payroll or income tax. The scheme is intended for research and development work that is technically new for your organisation. The work must be aimed at developing new products, processes or software, or for the purpose of conducting technical-scientific research.
You must keep detailed records of the hours worked and the associated costs. In addition, it is essential that you submit the application to the RVO on time and describe the intended R&D activities in a clear and substantiated manner. Only then can you take full advantage of this scheme.
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