Through the WBSO scheme, the Ministry of Economic Affairs helps companies to reduce the financial burden of research and development (R&D) projects. Companies pay less payroll tax, and the self-employed receive a fixed tax allowance.
What is WBSO?
WBSO stands for the Research and Development Promotion Act. Under the WBSO, you can receive a subsidy towards the wage costs of employees carrying out research and development work.
Who is the WBSO for?
The WBSO is intended for Dutch companies carrying out research projects. This includes start-ups, self-employed individuals (ZZP) and SMEs, right through to multinationals in every sector. Are you a self-employed person who spends at least 500 hours on R&D in a calendar year? If so, you are eligible for a fixed income tax allowance.
For what sort of projects can you apply for WBSO funding?
- The development of technically new (parts of) physical products, physical production processes or software.
- Technical-scientific research.
What criteria must your project meet?
- In a development project, you will be developing something that is technically new to your company. In the course of this, you will encounter a technical problem. You are looking for a new solution to this problem, and you wish to demonstrate how it works.
- In technical and scientific research, you seek an explanation for a phenomenon that cannot be accounted for on the basis of generally available knowledge. Your research comprises two key elements: technical and scientific.
How much is your tax relief?
For companies (not for the self-employed), the reduction in payroll tax payable (the so-called R&D tax relief) amounts to 32% of the first €350,000 of the total R&D tax base (for start-ups, an increased rate of 40% applies to the first €350,000 of the total R&D base) and 16% of the remaining R&D base.
The standard allowance for self-employed people and new self-employed people is €12,522. For new self-employed persons, the supplementary allowance is €6,264. A self-employed person who employs staff may be eligible both for the R&D payroll tax relief for their staff and for their own R&D allowance.
When can an application be made for the WBSO?
Request Applications may be submitted at any time of the year, for a period of at least 3 and no more than 12 months. An application period may not extend beyond a calendar year. A maximum of 3 applications may be submitted per calendar year.
This article was produced in collaboration with Major Q. Major Q is a specialist in grant acquisition. You can find more information about Major Q here.
