The Netherlands is a highly attractive location for innovative companies, thanks in part to favorable tax incentives like the Innovation Box. Also known as the “patent box,” this scheme allows companies to pay a lower corporate tax rate on profits derived from innovative activities.
What is the Innovation Box?
The Innovation Box is a tax incentive available to corporate tax-paying companies in the Netherlands. This scheme reduces the effective tax rate on profits generated from innovations developed in the Netherlands. Instead of the standard corporate tax rate (currently 19-25.8%), companies only pay 9% tax on this “innovative profit.”
| Profit | 2025 | 2026 |
|---|---|---|
| SME tariff | 19% (up to €200.000) | 19% (up to €200.000) |
| Standard tariff | 25,8% (profits exceeding €200.000) | 25,8% (profits exceeding €200.000) |
| Innovation Box | 9% on profits derived from qualifying innovative activities | 9% on profits derived from qualifying innovative activities |
Who is the Innovation Box suitable for?
The Innovation Box is particularly beneficial for companies that:
- Are established in the Netherlands and pay corporate tax.
- Generate profits from products, processes, or software resulting from their own research and development (R&D).
- Hold a WBSO (R&D tax credit) certificate (proof from the Dutch government that your R&D activities qualify for a subsidy) or a patent.
Innovation Box & WBSO
To access the Innovation Box, companies often need to demonstrate that their intangible assets resulted from qualifying R&D. Holding a WBSO certificate is one way to meet this requirement, serving as official proof from the Dutch government that your R&D activities are eligible for a subsidy and thus qualify for the Innovation Box. This close link between the WBSO and the Innovation Box makes them a powerful combination for companies looking to maximize the financial benefits of their R&D efforts in the Netherlands. It allows companies to first reduce R&D costs through the WBSO and then enjoy a lower tax burden on the resulting profits through the Innovation Box, further incentivizing innovation and helping companies retain more of the financial rewards generated by their investments.
The WBSO in itself offers a tax credit that reduces the wage tax and social security contributions you pay for employees engaged in R&D work. For companies, this can amount to up to €20,000 per R&D employee annually. Self-employed individuals can also benefit from a fixed tax deduction if they conduct qualifying R&D work.
WBSO & Innovation Box
Dutch innovation incentives operate in two stages: the WBSO reduces payroll tax during the development phase, while the Innovation Box lowers corporate tax on qualifying profits. In 2026, holding a WBSO certificate is the standard requirement for SMEs to access the 9% tax rate.
— Andreas, Tax Advisor
+ WBSO: Wage Tax Credit
- Technical Threshold: Focus must be on new hardware, software, or production processes.
- Credit Value: Approximately €20,000 per R&D employee per year.
- Geography: Work must be conducted within the EU/EEA.
+ Innovation Box: 9% Corporate Tax
- Eligibility: SMEs must present a WBSO certificate as proof of innovation to the tax authorities.
- Strategic Threshold: Generally applied once innovative profit reaches €150,000 to offset administrative costs.
Compliance Note: Both incentives require a 10-day time-tracking update rule and technical proof of project progress. Failure to maintain this administration can lead to retroactive clawbacks of the tax benefits.
Step-by-Step Guide to the Innovation Box:
- Meeting the requirements:To qualify for the Innovation Box, your company must meet several requirements:
- Corporate tax liability: Your company must be established in the Netherlands and subject to corporate tax.
- Technological innovation: Your company must have produced a technological innovation that generates profit. This innovation can stem from a WBSO project or be protected by a patent.
- WBSO certificate or patent: You must possess a WBSO certificate (see steps below or read our full WBSO guide) or a patent to demonstrate that your innovation qualifies. Large companies must always hold a patent in addition to a WBSO certificate.
- Demonstrating the link: You must be able to demonstrate the link between the profit earned and the technological innovation.
- Profit forecast: You must be able to provide a forecast of the expected profit development resulting from the innovation.
- Legal ownership: The innovation must be legally owned by the company that received the WBSO certificate.
- Determining the innovative profit:The next step is to determine the “innovative profit.” This is the portion of the profit that can be directly attributed to the innovation. The Dutch Tax Administration has developed specific methods for this purpose.
- Submitting the application to the Dutch Tax Administration:The application for the Innovation Box is submitted to the Dutch Tax Administration along with your annual corporate tax return. It is crucial to provide all necessary documentation and calculations accurately and completely.
Steps to obtaining WBSO certificate:
The WBSO in 8 steps
WBSO Eligibility Quick Scan (2026)
Costs and Benefits
The costs associated with applying for the Innovation Box primarily consist of the time and effort required to prepare the application and gather the necessary documentation. You can choose to do this yourself or seek professional assistance.
The benefits of the Innovation Box can be significant. The lower tax rate on innovative profits allows your company to retain more funds to invest in further innovation and growth.
The Dutch Innovation Box in a European Context
The Netherlands’ 9% Innovation Box rate is competitive compared to other European patent box regimes, which range from 1.75% to 12.5%. The Dutch regime covers a broad scope of IP and aligns with international standards, making it an attractive option for companies engaged in R&D.
When is it worthwhile to start with the Innovation Box?
It is advisable to explore the possibilities of the Innovation Box if your company anticipates an “innovative profit” of approximately €150,000 or more.
WBSO optimization is crucial!
A well-structured WBSO application is essential for a successful Innovation Box application. The Dutch Tax Administration utilizes the information from the WBSO application to assess the extent to which the innovation contributes to the company’s profitability.
Need help applying for the Innovation Box?
Applying for the Innovation Box can be a complex process. Subsidycloud has extensive experience in guiding companies through the application process. Our specialists can assist you with:
- Assessing whether your company qualifies for the Innovation Box.
- Optimizing your WBSO application.
- Determining the innovative profit.
- Preparing and submitting the Innovation Box application.
Further reading
- R&D Tax Incentives in Europe
- Comprehensive guide on business in the Netherlands
- Tax authorities guide on Innovatiebox
Get in touch!
If you have any questions about the Innovation Box or want to learn more about our services, please feel free to contact us. We are happy to assist you!
