Companies with employees (S&O-inhoudingsplichtigen) are entities that directly conduct research and development (R&D) activities and have employees engaged in these activities. These entities can range from large multinational corporations to small and medium-sized enterprises (SMEs). Companies that meet the following criteria may be eligible to apply for WBSO as S&O Payers:
Freelancers and WBSO: Although freelancers and external contractors can contribute to a company’s R&D activities, their hours and work cannot be included in the wage tax reduction calculation for WBSO purposes. This is because WBSO is specifically designed to reduce wage costs for payroll employees involved in R&D. As such, businesses are encouraged to employ R&D staff directly to fully benefit from the tax reductions offered by WBSO.
A medium-sized technology company, Company A, engages in R&D activities to develop a new type of battery with higher energy density. They have a dedicated R&D team, consisting of employees on the payroll, working on this project. Their research is systematically organized and conducted within their European facilities. This company qualifies as an S&O Payer because they meet all the required criteria and have the necessary payroll employees to claim the tax benefits.
Company B, a digital marketing agency, employs freelancers to update their software tools and maintain their website. These activities are routine and do not involve significant technical-scientific research or innovation. Additionally, because Company B relies on freelancers, it does not have eligible payroll employees to claim the WBSO wage tax reduction. Therefore, Company B does not qualify as an S&O Payer under the WBSO scheme.