The Innovation Box is a special tax regime under corporate income tax. Under the Innovation Box, your company only pays 9% corporate tax on profits from WBSO projects. This represents a significant tax saving compared to the 'standard' rates of 15% to 25.8%.
You may have heard of the Innovation Box before, but perhaps you're unsure whether you qualify, how to apply it, or what the exact benefits are for your business. Or maybe, due to changes in the Innovation Box regulations, you're encountering challenges with the annual implementation and/or extension process.
It’s often thought that the Innovation Box is only relevant in rare cases, for cutting-edge technological developments by medium-sized or large companies. In reality, it’s more accessible than many think. We’re happy to explore the potential opportunities for your business.
Together, we'll assess whether you qualify for the Innovation Box or whether the regime can be extended using our five-step Innovation Box scan:
If your company holds WBSO declarations – a Dutch tax incentive that provides R&D payroll tax relief and other benefits – and wants to implement the Innovation Box, you’ll need to meet specific administrative requirements. This may include entering into a multi-year advance agreement with the Tax Administration. We'll coordinate with the Tax Administration on your behalf, as well as the implementation of the Innovation Box in your annual corporate income tax return.
Since its introduction in 2008, the Innovation Box has undergone several changes. The most significant revision took place in 2017, substantially changing the coordination process with the Tax Administration and the subsequent annual implementation.
Is your company approaching the point where it needs to enter into discussions with the Tax Administration about extending your access to the Innovation Box? Feel free to get in touch and we’ll assess whether your company is properly prepared for the extension process.
Even if your company isn't generating profits (or is set to start generating them soon), it’s wise to start exploring the Innovation Box early. Your business may become profitable in the future, and making the necessary preparations today may unlock maximum benefits when the time comes. Together, we’ll look at how to anticipate this and seize the opportunities early on.
