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Sara
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As an entrepreneur or freelancer, innovation is essential to stay ahead in your industry. The WBSO (Wet Bevordering Speur- en Ontwikkelingswerk), the Dutch R&D Tax Incentive, is a fiscal stimulus scheme from the Dutch government that helps you reduce the costs of R&D (Research and Development). It allows you to pay less payroll tax or receive an additional deduction as a self-employed professional. In this article you will discover how to make optimal use of this scheme as an entrepreneur or freelancer to reduce innovation costs and grow your business.
As an entrepreneur or freelancer, innovation is essential to stay ahead in your industry. The WBSO (Dutch R&D Tax Incentive) is a fiscal stimulus scheme from the Dutch government that helps you reduce the costs of R&D. It allows you to pay less payroll tax or receive an additional deduction as a self-employed professional.
In this article you will discover how to make optimal use of this scheme as an entrepreneur or freelancer to reduce innovation costs and grow your business.
The WBSO is accessible to various types of entrepreneurs, including:
Freelancers and self-employed professionals: You qualify if you spend at least 500 hours per year on R&D work.
SMEs and startups: Companies with staff can reduce the payroll costs of R&D employees.
Do you have an innovative project in which you are developing a technically new product, process or software? Then you can probably apply for the WBSO.
Not all projects meet the WBSO requirements. Your project must:
✔ Be technologically innovative and lead to a new or improved product, process or software.
✔ Solve a technical problem for which the solution is not yet directly known.
✔ Be developed internally within your business.
Software development: Designing a new web application with unique algorithms.
Product innovation: Developing a prototype of a smart IoT device.
Process optimisation: Improving production processes with innovative techniques.
By applying for WBSO, you benefit from 💰:
Payroll tax reduction: Save on the payroll costs of employees working on R&D.
Self-employment deduction: As a self-employed professional you receive a fixed deduction on your income tax.
Lower development costs: More financial room to invest in innovation.
The application is made via the Netherlands Enterprise Agency (RVO). Follow these steps:
✔ Write a project description: Describe your innovation, technical challenge and development process.
✔ Submit application to RVO: This can be done multiple times per year, but always before the project starts.
✔ Keep records: Maintain accurate time registration and documentation.
✔ Offset the subsidy: Use the approved WBSO in your tax return.
Many entrepreneurs do not make full use of the WBSO, while it is a great opportunity to reduce innovation costs. Even as a freelancer or small entrepreneur you can benefit!
👉 Want to know whether your project qualifies? Get in touch with us and we will help you with the application!