Innovation Box: tax incentive for structural R&D

For innovative companies, the innovation box can create financial scope to scale up research and development. The Dutch innovation box makes it possible to tax a portion of the profits from innovative research at a significantly lower corporate income tax rate.

Instead of the regular rate, which can be as high as 25.8%, an effective rate of 9% applies to innovation box profits. For companies with structural R&D efforts, this can make a substantial difference.

When are you eligible for the innovation box?

The innovation box is intended as an incentive for technological development and creative applications in the business sector. At the same time, it is not a generic scheme. The conditions are specific, and their application depends heavily on the nature and scope of the innovation activities within a company.

The scheme applies exclusively to benefits arising from internally developed intangible assets, such as software, technology, or protected innovations. A WBSO declaration (R&D declaration) is a basic requirement. For larger taxpayers, additional eligibility requirements apply, such as a patent, plant breeders' rights, or self-developed software.

Companies fall into this category if, measured over five financial years, they have:

• Have achieved at least €37.5 million in benefits from intangible assets, or
• Have achieved a net group turnover of €250 million or more.

The access ticket – as it is known in practice – serves as additional proof of innovation.

HVK Stevens, where tax incentives are tailor-made

In theory, the scheme sounds simple, but in practice, calculating the innovation benefit is often a subject of debate. What is the innovative share in the total profit? How do you allocate costs and revenues across different activities? And how do you ensure that this is in line with economic reality and acceptable to the tax authorities?

HVK Stevens assists companies in creating clarity in advance. Our tax specialists and lawyers provide a solid foundation and translate this into a settlement agreement with the tax authorities, so that tax certainty is guaranteed.

Tax innovation starts with strategic positioning

The innovation box is not just about tax savings, but also about positioning innovation as a strategic element within the company. Companies that succeed with the scheme do so not only by exploiting tax rules, but also by documenting innovation properly, structuring it internally, and positioning it in a tax-efficient manner.

Would you like to know whether your innovative activities are eligible for the innovation box?

Insight into your innovative strength and the tax opportunities available to you makes the difference between taking advantage of a scheme and really getting a return on your investment. Would you like to know more about the application and strategic use of the innovation box? We are happy to share our insights.