Entrepreneurs who work on technical innovations may apply for the Dutch R&D Promotion Act, also known as the Research and Development (R&D) tax credit. The Dutch acronym for this Act is WBSO (Wet Bevordering Speur- en Ontwikkelingswerk). The WBSO is a tax incentive with which the Dutch government makes a contribution towards the wage costs and other costs related to your R&D activities. The tax benefit consists of a reduction in wage tax and social security contributions (Dutch: Loonbelasting en premie volksverzekeringen). Usually, the salaries of employees who are working on R&D projects form a major part of the total R&D costs in a company.
In 2020 this R&D deduction is 32% over the first €350.000 of the total R&D wage costs and 16% over the remainder. If you are a start-up company, the benefits are as high as 40% over the first € 350.000 and 16% of any amount thereafter.
Consequently, enterprises pay less payroll tax for their employees and the expenses of R&D projects are decreased. From small and medium-sized enterprises (SMEs) to multinationals, from start-ups to family-owned businesses, all are eligible to apply for WBSO.
Products, processes, and software
Various types of projects fall within the scope of WBSO, such as developing innovative software, inventing innovative tools for the construction industry, or developing a more efficient production line for the food industry. For products and processes the developments have to concern technically new (components of) tangible products or (parts of) tangible production processes. With software development, the R&D activities have to be aimed at technically new (components of) software which have to be programmed by employees on the payroll for which the WBSO application is to be filed.
Because of this broad scope, it is very likely that your company can benefit from the WBSO and directly profit from the cash flow advantages it brings. SUBtracers has a team of specialists who can offer expert advice on all of your WBSO questions. For the past eleven years, this team has been a frontrunner with regards to the WBSO and has developed a number of unique methods to achieve maximum results for clients.
SUBtracers maximizes the WBSO-benefit and minimizes the risk involved
- No cure – No pay
- SUBtracers writes your application and helps you with your WBSO-administration
- Free Subsidy Scan or second opinion possible
- Track record of 97,3% success rate regarding WBSO on software development
- 70% chance on more subsidy in comparison to your current WBSO-application (with other consultants)
- Always included: WBSO additional information requests and guidance at audits