Dutch Research & Development Tax Credit (WBSO)
TABLE OF CONTENTS
Overview
The Netherlands offers generous incentives to companies conducting R&D in the form of a payroll tax rebate, meaning your company can benefit from this tax incentive even if it is not profitable. The WBSO (Wet Bevodering Speur- en Ontwikkelingswerk) is the Netherlands' R&D tax credit which offsets payroll taxes, allowing loss-making companies to benefit immediately through reduction in payroll.
How the credit is calculated?
The credit is calculated as follows: ((R&D hours x R&D hourly wage) + (fixed amount or estimated costs and expenses)) x first or second tax bracket percentage.
Tax bracket percentages
| Credit rate on the first EUR 350,000 | 32% |
| Credit rate on R&D >EUR 350,000 | 16% |
Application process
Up to four applications per year are allowed
Patent box approval is possible after successful WBSO claims.
