jun 26

WBSO: Who is qualified?

By Diana | Subsidy

Any entrepreneur in the Netherlands can be qualified for the WBSO subsidy help. The company can be of any size and can be working in any business field. The WBSO distinguishes between entrepreneurs who withhold payroll taxes (inhoudingsplichtigen) and who are subject to wage tax (belastingplichtigen). This article provides more information about tax regulations and the WBSO conditions.

R&D tax withholding agents

Entrepreneurs are qualified for a reduction in the payroll tax if they conduct business within the meaning of the regulations on corporate tax or employ staff who carry out R&D.

R&D tax withholding agents are entrepreneurs who manage a business that is not a public knowledge institute. They should carry R&D activities and withhold payroll taxes on behalf of their employees. Before becoming an R&D tax withholding agent, an entrepreneur should be issued a payroll tax number from the Dutch Tax and Customs Administration.

Holding company / operating company

Both entrepreneur’s operating company and the holding company have to apply for the WBSO if their employees carry out R&D.

Tax entity

In case a company hires employees to a third party, they fall under the WBSO only when organising the R&D work at the third party’s company. An exception to this is made for hiring in or hiring out employees. Employees may be hired in or out for R&D, for example, by an employment agency or by companies within a tax entity that carry out work on a specific project. When employees are hired in and out by companies within a tax entity, each employing company needs to submit an application.

Trainees

The R&D hours worked for the WBSO can include hours worked by trainees and students working on their graduation project. However, only if they are employed by the company and all the R&D conditions are met.

R&D taxpayers

A self-employed entrepreneur who manages a business within the meaning of the Wage Tax Act and works on R&D for at least 500 hours in a calendar year is qualified for an R&D tax credit. In this case, self-employed is indicated as an R&D taxpayer. A self-employed entrepreneur can submit more than one application, in case they manage a business through more than one company with R&D activities. A self-employed person cannot claim for costs and expenditures, neither can choose a fixed sum. Those entrepreneurs who hire salaried employees for R&D work can also apply for a WBSO tax credit as payroll tax withholding agents.

Contac the WBSO Software Specialist if you want to get more information about subsidies and grants for entrepreneurs in the Netherlands

Source: rvo.nl

mei 28

1

The WBSO in 8 steps

By Diana | Subsidy

Are you ready to create a valuable business with a team of technological professionals? Do you want to save money on wage taxation and other costs of innovative projects? If the answer is yes, then the WBSO subsidy is what you are looking for. Use your opportunity to apply for financial support from the Dutch government. The WBSO in 8 steps guideline will help you to understand the application procedure better.

Step 1: Intention to conduct research or development (R&D)

One of the biggest considerations in conducting an R&D project is costs. The WBSO subsidy can help you with the project funding. The WBSO lowers the cost of technical-scientific research and development, independently from the results. Almost every company in the Netherlands that plans to conduct R&D is eligible for the WBSO grant. The company can be of any size and can operate in any business industry. An application can be submitted for either of two types of projects:

The development of technically new physical products/physical production processes/software;
Technical scientific research.

Step 2: An application submission

The WBSO Software Specialist can guide you through the whole application process and provide support with any possible issues. Contact us for more information.

Step 3: Organization of an administrative record system.

The administrative records for the WBSO have to emphasize the nature of the R&D activities, the content, the progress, and the number of hours of your R&D work. If your first application is for a tax credit on the basis of a fixed sum against costs and expenditures, then you are obliged to keep administrative records of the costs and expenditures actually incurred for each R&D project. If your first application is for a tax credit on the basis of a fixed sum against costs and expenditures, then you do not have to provide a separate administration of the actual costs and expenditures. You have to make sure that you keep administrative records from the very beginning of the project(s), even without an R&D Declaration on your hands.

Step 4: The application check.

After your application has been submitted, consultants from the Netherlands Enterprise Agency (RVO.nl) inspect it to verify that it is complete. In case your application is…

Complete: you receive a confirmation of receipt and technical consultants continue with reviewing the content of your application.
Incomplete: you get an opportunity to complement your application with the necessary information or documentation. You have to provide this information to RVO.nl in a specified time period. Your application will not be processed if you do not submit this information on time. Once your application is complete, you are issued a confirmation of receipt.

Step 5: Evaluation of the content of your application.

Technical consultants review the content of your application by looking at the projects listed in the application, and their costs and expenditures, against the relevant laws and regulations.

The positive Decision about your application for the WBSO will be issued to you together with an R&D Declaration. The Decision specifies the number of hours and, where relevant, the costs and expenditures allocated to each project.

The projects that were not approved for the WBSO are also specified and explained in this Decision. The R&D Declaration specifies the maximum amount of the R&D tax credit deduction that you are entitled to apply to the payroll tax number without sub-number (RSIN) specified, in the period to which the Declaration applies.

Step 6: Deduction of your R&D credit from your tax return.

You deduct the granted R&D tax credit from your payroll tax returns.

Step 7: Submission of an actual R&D statement.

You have to submit a statement of the actual R&D hours worked and the actual costs and expenditures incurred within three months of the end of the calendar year covered by the R&D Declaration concerned. On the basis of this mandatory statement, RVO.nl may issue a correction R&D Declaration.

Step 8: Inspection.

RVO.nl consultants may visit your business to make a retrospective inspection of your R&D work, hours worked, and any costs and expenditures against your R&D administrative records. You will get a correction R&D Declaration if any errors are identified in your R&D administrative records. However, consultants may decide to impose a fine in case of violations.

mrt 10

1

SIDN Fund Grant

By nick reineman | Subsidy

What is SIDN Fund?

SIDN is an independent foundation. It is committed to solutions for security, stability, and trust of the Internet. SIDN is the foundation for internet domain registration in the Netherlands. The Fund was established in May 2014 with a start-up capital of around 5 million euros. SIDN Fund grant supports innovative internet projects that provide better accessibility, security, and creativity. The purpose of the fund is to improve the social impact of the Internet in the Netherlands.

How does SIDN work?

The SIDN fund grant provides money to projects that work on innovative ways of using the Internet. The Fund contributes to prosperity and welfare in the Netherlands by supporting innovative ideas in the data world.

Who can apply?

Pioneers - innovative ideas with guts:

Project in the idea phase. Focused on the elaboration of a promising idea to a demo, pilot or experimental design. A good idea that can be brought to the next phase by a strong team. The maximum contribution is € 10,000 per project. Applicants can submit a Pioneer project proposal during the whole year.

Potentials - visible social potential and sustainable impact:

A project with demonstrable potential, supported by a proof of concept. Further development and scaling up a promising, working concept or translation of scientific research into a usable application, with the potential for sustainable further development of the project. Potentials projects are projects that aim to upscale a working prototype into a useable application with significant potential. Contributions are up to € 75,000 per project.

How to apply?

If you are an entrepreneur who works in the tech field, you can apply for the SIDN Fund subsidy! You can find more information about the fund, deadlines and required criteria on sidnfonds.nl. Contacts us if you wish to apply for this subsidy directly. Or if you have any questions about the application procedure. Our specialists always available to answer you. m: info@wbso-software.nl p: +31 6 27 09 59 24 Make an appointment with the online calendar: https://calendly.com/nickreineman

feb 21

3

What is WBSO Subsidy and who can get it?

By Diana | Subsidy | No Comments

WBSO: Save money on hiring developers with government support

Creation of a valuable business requires a lot of effort and money. Especially, if you are interested in team of professionals in the fields of technology or engineering. However, it is nice to remember that the Dutch government actively supports local enterprises with grants like the WBSO subsidy.

What exactly is the WBSO subsidy?

The WBSO stands for the “Research and Development tax credit”. This subsidy helps companies to reduce wage tax, national insurance contributions and other costs of the innovation projects. The grant is provided by the Ministry of Economic Affairs and Climate Policy to entrepreneurs who plan to invest in research and development.

For whom is the WBSO?

The WBSO subsidy is intended for the companies registered at the Dutch Chamber of Commerce and who hire researchers for R&D projects. To be able to apply for the WBSO a company should meet several requirements:

It should experience new technological development accompanied by technological problems
the R&D activities should not be started yet
the R&D activities should be organized inside the company

More information about the official conditions of eligibility can be found on the website of the Netherlands Enterprise Agency. However, it is also possible to scan your profile on our website and get an immediate advice from the specialists.

Why do you need the WBSO subsidy?

The WBSO grant can help entrepreneurs with the technical aspects of production and development. A company can apply for the WBSO if it manages the majority of the technical solutions itself or it wants to test the prototype. Therefore, the WBSO subsidy is suitable for every type of company. However, it is most widely used among enterprises in the IT sector or manufacturing industry. The subsidy gives benefits of reduced wage taxes or other R&D expenditures (including costs incurred for machine hours or prototypes). The grant is especially valuable for startups.

What is happening after the grant is received?

In addition to maintaining an hour administration, you should be able to provide information about the WBSO costs incurred. You have to report once a year how many hours and costs you have incurred in total and which employees have worked on the projects.

Apply for the WBSO subsidy! It is a good opportunity for your business to grow. Although, if you are not sure about the necessary application steps and need help you can get in touch with us and we will guide you through the whole process.

feb 20

2

What is Research & Development activities for the WBSO?

By Diana | Subsidy | No Comments

R&D activities differ from organization to organization. Although these activities are generally of high risk and uncertain amount of investment, they are crucial for the product development and expansion of market shares. The companies in the Netherlands have a chance to apply for subsidies and government grants to cover the R&D expenditures, however, these activities have to be qualified.

Generally, R&D activities that can qualify for the tax credit fall in one of these four categories:

1. New product development

2. New process development

3. Incremental product development

4. Incremental process development

Terms like “new” and “incremental” refer to the individual enterprise, but not to the whole industry.

Examples of qualified activities include:

Design and development of new products/manufacturing process
Product experimentation and modification
Research of new applications for existing products;
Testing for conformity with domestic/foreign regulation standards
Improvement of a prototype of new products
Work automatization
Improvement of manufacturing/production technologies
Software development

Activities are unlikely to be considered as R&D and therefore cannot be qualified for a tax credit if they relate to the general expenditures that a company would undertake without R&D.

Examples include:

Testing or analysis of activities for quality control
Routine data collection
Testing and qualification of production lines;
Production modifications without technical uncertainty
Market research for advertising or promotions;
Research that is funded by a third party
Any other activities that do not fall into four mentioned categories

Certainly, rules and conditions for R&D regulations can differ depending on the country, region and industry, hence a company can require external help to make the right conclusions. You can get in touch with us or use the WBSO scan to be sure that your company and activities are eligible for a tax credit.

Subsidy