WBSO - Compensation of salary costs for R&D
The Promotion of Research and Development Act (WBSO) is a tax incentive that compensates a portion of the salary costs for R&D activities by a reduction in the payroll tax to be paid. This advantage can be up to 35% - and for starters, even 50% - of the related R&D labour costs!
WBSO can be requested for R&D activities that are technically new to your company and consist of:
- Technical scientific research
- Technical product and process development (development of physical products and production processes)
- Research on the technical and organisational feasibility of an R&D project
- Technical research aimed at significantly improving a production process
Besides the advantage of the payroll tax that can be achieved with the WBSO, the WBSO is the entrance ticket to the RDA and the Innovation Box.
RDA - Allowance for other R&D expenses
The Research and Development Allowance (RDA) compensates for some of the other R&D costs, such as material costs and expenses related to WBSO projects. This is accomplished by an additional deduction in income tax/corporation tax amounting to 60% of these costs. The RDA does not cover labour costs, so the WBSO must.
Are you eligible for the WBSO and RDA? Mazars will be glad to help you with the application for a decision and will set out the costs and expenses that qualify for the RDA.
Innovation Box - Reducing corporation tax
The Innovation Box taxes innovative profits effectively at only 5% corporation tax. The condition is that these profits come from an intangible asset itself developed under the heading WBSO, such as a product, process and piece of software (or for which a patent is granted). The Innovation Box is not available to entrepreneurs in respect of income tax.
Would you like to know what tax benefits you can achieve with the Innovation Box? Through a quick survey, we can advise you about the possibilities for your company.
Would you like to learn more?
Would you like to talk to us about what tax benefits innovation can offer your organisation? Then talk to Eric Klein Hesseling (partner) by e-mail: firstname.lastname@example.org or by phone: +31 88 277 23 84. He will be happy to assist you.