WBSO subsidy application (Wet Bevordering Speur- en Ontwikkelingswerk)
Innovation is crucial for your company’s competitive position. The WBSO (Bevordering Speur- en Ontwikkelingswerk) regulations, administered by the RVO (The Netherlands Enterprise Agency) 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 which are 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 categories 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
DB&P is 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 based 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 3 and a maximum of 12 months, whereby these months do not overlap. Your application needs to be submitted in advance and it will start 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. Your WBSO advantage will contribute:
- 32% of the salary/wages bill of projects up to € 350.000 (table 1)
- 16% of the salary/wages bill of projects from € 350.000 (table 2)
- For techno-starters (less than 5 years in business and obtained less than 3 years WBSO subsidy) a percentage of 40% of the R&D salary/wages in table 1 and 16% in table 2.
- 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 € 12.775and € 19.166 for a techno-starter in 2019. To qualify for this deduction, the self-employed person must work for on the subsidy based activities for at least 500 hours.
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 that are realised by the end of the subsidy year.
Do you want to learn more about the WBSO subsidy? Then please contact De Breed & Partners.