Understanding the WBSO: A Dutch R&D Tax Incentive

What is WBSO?

The WBSO (Wet Bevordering Speur- en Ontwikkelingswerk) is a Dutch tax incentive designed to stimulate technological innovation by reducing wage tax and national insurance contributions for companies engaging in research and development (R&D) activities. This financial support makes R&D more affordable, helping companies remain competitive in their respective fields.

The WBSO is available to a wide range of organizations, including large corporations, small and medium-sized enterprises (SMEs), and self-employed individuals. However, public knowledge institutions cannot apply for the subsidy.

As one of the largest subsidy programs in the Netherlands, the WBSO has an annual budget of more than €1.5 billion. This makes it a crucial tool for promoting innovation across various sectors.

What Types of Projects Are Supported?

The WBSO supports projects that involve the development of technically new products, production processes, or software. This includes:

Projects must involve technical risks or uncertainties, meaning the outcome is not guaranteed and requires innovative problem-solving.

How Much Can Companies Expect to Get Out of It?

The exact amount of subsidy a company can receive depends on the type of costs and the amount of R&D work undertaken:

Self-employed individuals can receive a fixed deduction of €15,551, with an additional deduction of €7,781 for starting entrepreneurs.

Curious how much WBSO you could receive? Use our WBSO Calculator to estimate your potential R&D savings!

What Are the Downsides of the WBSO?

While the WBSO provides valuable financial support, there are a few potential downsides:

Strict Documentation and Compliance

Companies must keep detailed records of their R&D work, including hours worked, project descriptions, and costs. Failure to maintain accurate administration can result in penalties or the rejection of the subsidy.

No Retrospective Claims

WBSO applications must be submitted before the R&D work begins. Companies cannot claim WBSO benefits for projects that have already started.

Limitations on Eligible Costs

Only direct R&D costs are eligible. Costs for subcontracted R&D, patents, travel, or administrative work are not covered by the WBSO. This limits the types of expenses companies can recoup.