What is the innovation box?
The innovation box is a tax incentive scheme where benefits from innovative activities are taxed at an effective rate of only 9% instead of the regular corporate tax rate. In 2025, this regular rate is 19% for the first bracket and 25.8% for the second bracket. This means you can make significant tax savings as an innovative company.
The scheme is designed to encourage companies paying corporate income tax to invest in research and development (R&D). Applying this low tax rate to profits arising from innovative activities makes it much more financially attractive for companies to innovate and leaves more capital available for further R&D investment.
Conditions for the innovation box
To benefit from the innovation box, your company must meet specific conditions. The tax authorities distinguish between smaller and larger taxpayers.
Smaller taxpayers
For smaller taxpayers (revenue below €50 million and profit below €7.5 million) applies:
- An R&D statement (Speur- en Ontwikkelingsverklaring) from RVO is required as an entry ticket
- You receive this declaration after a successful WBSO trajectory and it shows that you are performing activities that fall under research and development work
Larger taxpayers
For larger taxpayers (turnover above €50 million or profit above €7.5 million) stricter requirements apply:
- An R&D declaration from RVO is required
- In addition, you must have a patent (patent), plant breeders' rights, or your innovative development must consist of software (software)
Nexus approach: direct link required
A crucial condition is the so-called nexus approach. There must be a direct, demonstrable link between:
- The costs incurred to develop the innovative product
- The resulting profits
You must be able to prove this link and document it properly in your records.
💡 Cooperative with experts in patents, innovation box, IP strategy and IP management
💡 Work with one or more independent patent attorneys
💡 A patent attorney at your location
Cooperation for optimal results
To achieve the best possible result when applying the innovation box, cooperation is essential. The scheme touches on several areas of expertise:
- Patent law: To obtain the necessary patents as an entry ticket
- Tax law: For correct application of the scheme and maximum benefits
- Grant law: For the WBSO application and S&O declaration
Custos IPC works closely with several strategic partners in the field of subsidies and taxation. Thus, intellectual property knowledge is combined with tax and subsidy expertise, resulting in an integrated approach to your innovation box process.
For example, in collaboration with PNO Innovation a knowledge session called Integral Innovation developed. It focuses on the topics WBSO, innovation box and patents and, in particular, their interrelation. If you are an R&D manager or CFO of an innovative company and want to get the most out of your subsidies and taxes, the comprehensive presentation, including calculation examples and cases, is an ideal reference. All we ask is to leave your name and e-mail address.
Why choose professional counselling?
While the innovation box offers attractive benefits, the scheme is complex and has strict conditions. Professional guidance helps:
- Determining whether your innovation qualifies for the scheme
- Strategically requesting the right patents
- Properly documenting costs and profits
- Making the most of tax benefits
Want to know more about the possibilities of the innovation box for your company? Contact us. We will be happy to analyse your specific situation and advise on the best strategy to get maximum tax benefit from your innovations.
Want to know more about the innovation box? Be sure to let us know!
