WBSO is the most frequently used instrument to stimulate innovation in the Netherlands. The total budget for this year is € 1.336 million. WBSO is intended to promote Research & Development, by providing a discount on payroll tax. The total discount is based on the number of hours and the funds that companies spend on R&D activities.
All companies in each sector -from startup to multinational- can apply for this financial contribution for their R&D costs.
Submitting a WBSO application is worth your while for three reasons:
- There is a large amount of money to be distributed, which generally is sufficient for all WBSO applications;
- A wide range of innovative projects is eligible – for products as well as processes and services and even for technological scientific research;
- There is no competition within this scheme; if the application meets the requirements, the tax discount will be awarded.
WBSO calculator 2022*
* Innovencio cannot be held liable for any calculation errors.
What is WBSO?
WBSO supports the development of a technically new product, a physical production process or software which is developed within your company. In some cases, even technical scientific research can be eligible for WBSO-discount. Companies can apply for WBSO for three types of R&D costs:
- Labour costs
- Costs for e.g. prototype components and materials
- Investments in R&D equipment
You can submit a WBSO-application for a minimum period of 3 months and a maximum period of 1 year. The number of projects you include in your application is unlimited.
What are the criteria?
The Innovation must fit within one of these categories:
- Development project (new product, process component or software)
- Technical scientific research
Most important terms and conditions:
- The proposed R&D activities have to take place in your own company (employees must be on the payroll of the Dutch entity);
- The technological development is new to your organization;
- The development is accompanied by technical challenges;
- The WBSO application must be submitted before the start of the R&D activities.
What do our clients think?
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What does WBSO mean financially?
Immediately after your WBSO application is awarded, you can deduct the awarded discount from your payroll tax. Your accountant will know how. The table below shows the reduction in payroll tax to be paid. In 2020, self-employed persons (with at least 500 R&D hours per year) received a fixed deduction of € 12,980.
|First tax bracket||40%|
|First tax bracket starters||50%|
|Border first tax bracket||€ 350.000|
|Rate second tax bracket||16%|
Vlog: Applying for WBSO tax deduction, is that easy?
WBSO is the scheme with which the Dutch government has stimulated innovation in large companies, but also small and medium-sized enterprises for many years.
Is it easy to apply for this WBSO tax deduction? Innovencio spoke with Ingrid Troquet, CFO of Precision Technology company GDO, a company that took care of applying itself for many years.
Why should you involve Innovencio in your WBSO application?
Successfully submitting a WBSO application may not seem very complicated, but making the most out of the WBSO certainly is. The following points summarize Innovencio’s added value:
- Strategic design of the WBSO application. If you are working on several developments, it is wise to submit several separate WBSO projects. Through these separate projects, you can include a wide range of activities in your application, resulting in a higher discount. This way, you can get the most out of the WBSO.
- A fresh pair of eyes sees more. In an organization, often more than one person or even several departments are in a position to completely oversee all the R&D activities. Innovation does not always only take place in the R&D department, but also in the production department, for example. Our consultants get to know your organization and your innovations well. With the use of their eyes, we can help you to identify all eligible projects, resulting in the highest achievable discount.
- Monitoring deadline for submission of documents. Once the WBSO has been granted, strict deadlines apply for the tax declaration and the delivery of other documents, such as hour administration, passing on BSN numbers and answering question letters. We monitor this entire process by making an annual schedule and requesting the required information from you in a timely manner. We ensure that you will not miss a deadline and that all documents are submitted correctly.
- Application for additional grants. We utilize the WBSO as a gateway to other, larger grants: It is often possible to combine the WBSO with additional, more complex grant schemes. These subsidies are sometimes less well-known, possibly less accessible and may require a different approach, but a well-written application may provide additional financial contribution(s) to your innovation. This will kill two birds with one stone. For instance, the WBSO can often be combined with a MIT or OPZuid grant.