WBSO R&D Tax Credit Netherlands

The WBSO R&D Tax Credit Netherlands is a government subsidy administered by the Netherlands Enterprise Agency (RVO) that reduces payroll taxes for companies conducting technical research and development. Supported by the Ministry of Economic Affairs and Climate Policy and the Dutch Tax and Customs Administration, the scheme targets innovations in physical production processes, software, and technical and scientific research. Applicants must submit proposals before commencing projects and maintain liability for Dutch payroll taxes while performing systematic R&D activities within the European Union. The program operates with a €1.582 billion budget for 2025, offering standard companies up to a 36% deduction on their initial €380,000 in R&D costs, while qualifying startups receive a 40% reduction. This resource is intended for Dutch startups, small to medium enterprises, and self-employed entrepreneurs seeking to lower the financial risks associated with technical innovation.

At a Glance

The WBSO R&D Tax Credit is the Netherlands' primary incentive for companies conducting technical research and development, backed by a total budget of EUR 1.582 billion. The program reduces the cost of R&D by providing tax credits on wage costs and other R&D expenditures. WBSO (Wet Bevordering Speur- en Ontwikkelingswerk) makes the Netherlands one of the most attractive locations in Europe for innovation-intensive businesses of all sizes.

Eligibility

Dutch companies conducting technical R&D are eligible, including large corporations, SMEs, startups, and self-employed entrepreneurs. The R&D must involve technical scientific research or the development of technically new products, processes, or software that resolves technical uncertainties. Routine engineering and standard development activities do not qualify. Both Dutch-headquartered companies and foreign companies with R&D operations in the Netherlands can apply.

What You Get

WBSO provides tax credits that reduce wage tax and social security contributions for R&D personnel. Credit rates are tiered, with a higher rate for the first tranche of R&D costs and a lower rate for amounts above the threshold. Startups and first-time users receive an enhanced rate for the initial bracket, significantly reducing the cost of hiring R&D talent. The credit directly lowers labor costs, making R&D investment more affordable and encouraging companies to innovate in the Netherlands.

How to Apply

Applications are submitted to the Netherlands Enterprise Agency (RVO) at least one month before starting R&D or at the beginning of the calendar year. Companies describe their R&D projects, the technical challenges involved, and estimated hours and costs. Applications can be filed up to three times per year for periods of at least three months. RVO assesses whether the work qualifies as eligible R&D and issues a certificate for use in payroll tax filings.

Past Recipients

WBSO supports thousands of Dutch companies annually across the full technology spectrum, from semiconductor firms and pharmaceutical developers to software companies and agricultural innovators. The program is widely regarded as a cornerstone of Dutch innovation policy and contributes to the Netherlands' consistently high ranking in global innovation indexes. It has been instrumental in attracting and retaining R&D operations from multinational companies.