Supportive R&D Incentives
The Netherlands actively promotes engaging in Research & Development activities through a favorable corporate tax system and specific R&D tax incentives that support innovation throughout the entire R&D lifecycle. The following measures may significantly lower company R&D cost and taxable base.
- R&D Tax Credit (WBSO)
Companies performing particular R&D activities may benefit from a 32% tax credit (up to 40% for startups) of the first €350,000 in R&D wage costs and other R&D expenses and investments, and 16% for those costs and investments exceeding €350,000.
- Innovation Box
Companies may benefit from an effective tax rate of only 5% for income from intangible assets— including technological innovations—created by the Dutch tax payer and for which R&D tax credit was received.
- Allowance for Top Syndicates for Knowledge Innovation (TKIs)
The TKI is a partnership between public entities and private parties or investors. Cash grants of 40% are available on the private investment costs for the first €20,000 and 25% for the excess. In order to receive TKI allowance, the cash grant has to be invested in the R&D project of the partnership.
- Innovation Credit
Innovation Credit is a risk-bearing loan from the government, intended for the development phase of a technically new product, process or service, including development of medical products that require a clinical study. Funding may vary from 25% (large companies) to 45% (SMEs) of relevant project costs with a maximum of €10 million, and the remainder being financed by the company’s own resources.