Innovative business? Corporate income tax credit: Innovation box!

Innovative business innovationbox

Does your company develop innovative products or software? Then you may be able to use the Innovation Box, which will lead to a CIT-credit.

Entry ticket

The entry ticket to the Innovation Box is an R&D statement. Larger companies (benefit from innovation box is greater than 37.5 million or net turnover is greater than € 250 million), in addition to an R&D statement, must also have one of the following second entry tickets:

  • Patent (or application for it).

  • Breeder's right.

  • Software.

  • License for distribution of a drug.

  • Registered utility model to protect your innovation.

  • An additional protection certificate issued by the Netherlands Patent Office.

  • An exclusive license granted to use a patent, plant breeder's right or license for medicine distribution or software in a specific manner, specific term or within a specific area.

What is the Innovation Box?

If a company can make use of the Innovation Box, the profits realized from innovative activities (R&D) are taxed at a maximum of 7% corporate tax. Please note that this percentage will be 9% in 2021. Normally this percentage is 16,5 or 25%. To determine this innovation profit, agreements with the tax authorities are made in advance.

KroeseWevers and the process

We can assist you and consult with the tax authorities and the entrepreneur. We can help to determine the optimal percentage of innovation profit. The percentage of profit from innovation is determined for 5 years. After that the agreement will be re-evaluated with the tax authorities. The percentage depends on the positions within the company; if there is substantial innovation development, this percentage may turn out higher. On the other hand, lower percentages are also possible in case the innovation function within the company weighs less heavily. In short, customization is required for a good Innovation Box agreement.

No Innovation Box appointment (yet)? Choose a fixed amount!

For reasons of simplicity, it has also been possible from 2013 to apply for a fixed amount in the Innovation Box. This fixed amount is 25% of your total profit and is capped at € 25,000. If you apply for the fixed amount, you do not need to calculate the exact amount of profit.

Each year you can choose whether or not to apply for the fixed amount. You may apply for the fixed amount in the year in which you generate the intangible asset and in the following two years. Processing takes place in the corporate income tax return and leads to direct tax savings.

How do I get access to the Innovation Box as an entrepreneur?

Because KroeseWevers has a multidisciplinary service, our subsidy advisers and our tax specialists can jointly make arrangements to apply for the Innovation Box for your company. Our subsidy advisers arrange the R&D statement that serves as an entry ticket to the Innovation Box. Our tax advisers arrange the Innovation Box application for the tax authorities. R&D (WBSO) + Innovation box, KroeseWevers has everything under one roof!

Does your company develop innovative products or software, and are you looking to achieve significant tax savings through the Innovation Box? Please feel free to contact the KroeseWevers advisors.

Would you like more information? Please feel free to contact us.
More information? +31 (0)53 850 49 00
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