By making use of the following tax arrangements, it is possible to realize significant cost savings. R&D wage tax allowances (WBSO) reduce production costs and the innovation box and the R & D deduction create a saving on tax. By combining these features it gives you more financial resources for innovation. Besides, it is a misconception that only companies in the High Tech industry are eligible for following regulations. Even everyday innovations that you do as an entrepreneur can qualify.
The Law for Promotion of Research and Development Activities (“WBSO”) provides companies for employees who develop R&D activities a significant discount on the to wage tax that needs to be paid.
The innovation box provides companies a reduced tax rate of effectively 5% instead of the regular rate of 25%.