In the Netherlands, various tax schemes can be applied if a company engages in innovation or sustainability. These tax schemes enable a company to realise significant tax savings. By combining them, more financial resources remain available for innovation and sustainability.
Promotion of Research and Development Act
Promotion of Research and Development Act (Wet bevordering Speur- en Ontwikkelingswerkzaamheden) significantly reduces the wage tax a company pays on the salaries of employees who perform R&D activities. We can assess for you whether innovative projects will be eligible for the Promotion of Research and Development Act. Companies’ ability to apply the innovation box in the Netherlands is contingent on Promotion of Research and Development Act eligibility.
Innovation box
The innovation box offers companies the option to have profits from innovation taxed at a lower effective corporate income tax rate. Rulings are often obtained from the Dutch Tax Authorities to determine which percentage of the profit can be taxed in the innovation box – and the rate for that year – so that there is certainty for multiple years about the tax benefit to be achieved.
EIA, MIA and SDE++
The Energy-saving investment credit (EIA), Environmental investment tax scheme (MIA) will yield an extra deduction and may even result in accelerated depreciation for tax purposes. Renewable Energy Incentive Scheme (SDE++) offers subsidy for using CO2-reducing technologies.
These regulations can be used for property development or solar energy projects. We advise business owners when they decide to invest so that the schemes available can be optimally utilised and the best investment date can be chosen.
Would you like to know more about innovation & sustainability? Feel free to call me on +31 (0)6 2787 0332.
