The Innovationbox

Has SUBtracers filed a successful WBSO-application on behalf of your company? Are you currently developing new software or a new product? If so, you can save up to 20% on taxes! This is made possible by the implementation of the ‘Innovationbox’, a corporate income tax reduction that was introduced in order to promote innovative technological developments and support investments in new technologies. Through the Innovationbox, a part of the profit earned with R&D projects qualifies for an effective corporate income tax rate of 9% (instead of 25%). SUBtracers is vastly experienced in the field of the Innovationbox and can help you realize substantial tax savings.

How Does it Work?

In short, the Innovationbox provides the possibility to tax revenues from innovation against very favorable conditions – i.e. 9% corporate income tax.

The Innovationbox can be applied when innovative activities are performed for which an WBSO tax credit has been granted.

Terms and Conditions

• For “small taxpayers”  the WBSO decision is the access ticket;
• For “large taxpayers” there is an extra criteria: the WBSO Decision + a legal ticket.

A taxpayer is ‘small’ if

1. The worldwide net sales of the group to which the taxpayer belongs (o.b.v. consolidated commercial accounts) in the year of application of the Innovationbox and the preceding four years in total is less than € 250 million;
   and
2. The profit attributable to intangible assets for which a WBSO Decision was issued in the year of application of the box and in the four previous years, a total of less than € 37.5 million.

For ‘large’ taxpayers legal tickets can (a.o.) consist of patents and plant variety rights and applications, software developed within the WBSO and certain market authorizations/approvals (particularly for pharmaceuticals).

Flat rate innovationbox

Determining the benefits that can be attributed to the intangible assets is often seen as an intensive and administratively complex process. In order to make the Innovationbox more accessible and appealing to SMEs, a flat-rate innovationbox has been introduced. This means that, on request, 25% of the profit will be designated as Innovationbox benefits, whereby the flat rate will be capped at € 25.000,-. Each year, the choice can be made whether or not to apply the flat-rate.

Subtracers and the Innovationbox

SUBtracers cooperates with a national group of Innovationbox specialists, who share their knowledge and experiences amongst each other. The combination of knowledge and hands-on experience makes SUBtracers the ideal grants & incentives partner. Interested? Contact us, and we will help you implement the Innovationbox.