WBSO subsidy application (Wet Bevordering Speur- en Ontwikkelingswerk)
Innovation is crucial for your company’s competitive position. The Bevordering Speur- en Ontwikkelingswerk (WBSO) regulations, administered by the RVO (Rijksdienst voor Ondernemend Nederland) stimulate technical innovation within Dutch business. Here, it is all about the technical development of new products, production processes or programming carried out within your company, whereby you can reduce your monthly wage/payroll taxes by utilising the WBSO subsidy. To qualify for this, the technical development must be both new to your company and developed in- house.
What is the WBSO?
The WBSO subsidy is meant for all Dutch companies which are required to collect payroll tax as well as self-employed businesses required to pay income tax. So, regardless of the size of your company you can easily qualify for the WBSO!
Which activities qualify?
There are two categories of projects for the purpose of application. These are:
- The technical development of a new technical, physical product, production process or new technical programming
- A technical related scientific study
WBSO ICT for the development of new technical programming
De Breed & Partners is the market leader in the field of WBSO ICT subsidy applications. For this reason, ICT subsidy applications are explained separately. In order to determine whether a programming development such as R&D qualifies, it is essential that the development is technically new for your organisation. This must involve the actual creation of prototypes of technically new programming. The technical innovation must relate to the activities you carry-out and it must be a new technology for your company, a further development of an existing technology or the development of a technical solution to a specific information technology problem. For the WBSO technically new programming is all about a problem in the information technology field.
The WBSO application will be further handled on the basis of one or more projects. The programming and technical problems, paths to solutions and technical risks of a project are important in showing that a project is technically innovative. All technical related project-hours are covered by the WBSO. A WBSO application can be submitted three times per year for a period of a minimum of three and a maximum of six months whereby these months do not overlap. Your application needs to be submitted in advance and starts after the completion of one full calendar month. We will, of course, help you determine which activities do or do not qualify for the WBSO.
Advantages of the WBSO
A WBSO determination gives the right to a deduction on your pay-roll taxation and social security contributions. In 2016 these deductions totalled:
- 31% of the salary/wages bill of projects up to € 350.000 (table 1)
- 14% from € 350.000 (table 2)
- For techno-starters (> 5 years in business and less than 3 years WBSO subsidy) a percentage of 40% of the R&D salary/wages
- The flat rate is still € 29 per hour and is valid for 2 years
- The self-employed deduction is raised for the self-employed. This deduction is € 12.522 and € 18.786 for a techno-starter in 2017. To qualify for this deduction the self-employed person must work for at least 500 hours on the subsidy based activities.
If you receive WBSO recognition you, as the employer, are required to maintain a complete and correct R&D administration and submit the actual R&D hours realised by the end of the subsidy year.
Do you want to learn more about the WBSO subsidy? Then please contact De Breed & Partners.