The Dutch Government strongly values the innovative strength of the Netherlands. Innovation is therefore stimulated through Dutch tax incentives and subsidies. The Dutch tax subsidy scheme called WBSO can be applied by almost every company with innovative activities.
The Dutch WBSO (‘Wet Bevordering Speur & Ontwikkelingswerk’) is a Dutch tax incentive through which the Dutch government compensates part of the wage and material costs and expenditures of research and development (R&D). In practice, this means that you pay less wage tax and national insurance contributions. Freelancers receive a fixed deduction for R&D. Furthermore, the WBSO is also a qualifying entrance ticket for the favorable Dutch Innovation Box Regime.
You can apply for a WBSO subsidy. You can do so by submitting a project proposal to the Dutch RVO (‘Rijksdienst voor Ondernemend Nederland’). The project proposal should explain what the project entails and how many development hours you or your employees will spend on this project. In the project proposal, you can also choose for a compensation of the other R&D costs, such as materials used in the context of the R&D project or instead opt for a fixed increase of the R&D hourly wage. You can apply for a WBSO subsidy for several projects each period. We can act as an intermediary for you and submit any WBSO application on your behalf.
Consecutively, you can deduct the WBSO subsidy from your Dutch payroll taxes. This deduction is processed in the payroll administration. By the end of the period, you must indicate whether you have actually realized the WBSO hours. If that is not the case, you may have to pay back (part of) the subsidy.
An important condition for the WBSO subsidy is that a time registration and WBSO administration must be kept, which may later be requested by RVO.
Thanks to our extensive experience with innovative companies in various business sectors, such as in high-tech, automotive, health, ICT and software, we can assist you with your WBSO applications and help you with the design of your time registration and WBSO administration.