The innovation box is a tax incentive scheme for all companies paying corporate taxes. The scheme is designed to encourage companies to invest in research and development (R&D). By applying a lower tax rate to profits arising from innovative activities, it makes it more financially attractive for companies to innovate. Profits eligible for the innovation box are taxed at an effective rate of 9%, instead of the regular, higher, corporate tax rate. This can generate significant tax savings for companies investing in R&D.

Conditions Innovation box

By using the innovation box, you as a company can significantly reduce the effective tax burden, making more capital available for further investment in R&D and innovation.

To qualify for the innovation box, your company must meet specific conditions. First of all, there must be a direct, demonstrable, link between the costs incurred for the development of the innovative product and the profits derived from it. This is the so-called Nexus approach.

The Inland Revenue distinguishes between smaller and larger taxpayers. The limit is 50 million turnover and 7.5 million annual profit. For smaller taxpayers, a WBSO declaration (Wet Bevordering Speur- en Ontwikkelingswerk) is required as an entry ticket to use the innovation box

Larger taxpayers should have a second ticket in addition to the WBSO declaration. This can be in-house developed software software, or a patent.

Collaborate

To achieve optimal results, cooperation is highly desirable. Custos IPC works closely with several strategic partners, see below our services page. Thus, knowledge in the field of subsidies and taxation is combined with knowledge in the field of intellectual property.

If you want to know more about the ins and outs of the innovation box options for your company, just let us know. We'll be happy to find out for you! Check our contact page for the appropriate contact details.