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Directorate for Science, Technology and Innovation www.oecd.org/December2019
For more information, please visit: http://oe.cd/rdtax Contact us at: [email protected]
R&D Tax Incentives : Netherlands, 2019 Design features
Table 1. Main design features of R&D tax incentives in Netherlands, 2019†
Wet Bevordering Speur- & Ontwikkelingswerk (WBSO)
Type of instrument Payroll withholding tax credit
Eligible expenditures† Labour, machinery & equipment, intangibles, buildings
(R&D wage costs plus either the actual costs and expenses or lump sum)
Headline rates 32* (for eligible R&D costs up to EUR 350 000), 16 above EUR 350 000
Refund Redeemable against payroll withholding tax
Carry-over (years) 1**
Thresholds & ceilings
Threshold R&D expenditure of EUR 350 000
R&D tax relief Payroll tax liability**
*: 40 for start-ups - firms can be deemed to be a start-up company or entrepreneur for a maximum of three years. The amounts for the R&D deduction for self-employed amounts to EUR 12 775 (EUR 19 166 for starting self-employed/founders); **: In line with general wage rules, carry-over of unused claims is limited to consecutive tax periods within one calendar year. The Netherlands also offer an income-based tax incentive for outcomes of R&D activities. These are beyond the scope of this note.
Recent developments and trends
Figure 1. Implied tax subsidy rates on R&D expenditures: Netherlands, 2000-19 1-B-Index, by firm size and profit scenario
1 Disclaimer: http://oe.cd/disclaimer
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1-B-index Large, Profitable SME, Profitable Large, Loss-Making SME, Loss-Making
Directorate for Science, Technology and Innovation www.oecd.org/December2019
For more information, please visit: http://oe.cd/rdtax Contact us at: [email protected]
Public support for business R&D: the policy mix
Trends in government support for business R&D
Figure 3. Direct government funding of business R&D and tax incentives for R&D, Netherlands, 2000-17 As a percentage of GDP, 2010 prices (right-hand scale)
2 2012 is reference year due to a break in the BERD time series in 2011. For more details, see: https://www.cbs.nl/en-gb/publication/2013/27/ict-knowledge-and-the-economy-2013.
0.00
0.10
0.20
0.30
0.40
0.50
0.60
% Direct government funding Tax incentive support Subnational tax incentive support Total 2006 (excl. subnational tax support)
* Data on tax support not available, ** Data on subnational tax support not available
0
200
400
600
800
1000
1200
1400
0.00
0.05
0.10
0.15
0.20
0.25
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
2010 EURm
% Direct funding Tax incentive support Direct funding imputed R&D tax support (right-hand scale)
The cost estimate of tax incentive support for the Netherlands covered the WBSO and the RDA until 2015 and the new WBSO since 2016
