Dutch Government Increases R&D Tax Budget by €100 Million for 2025
The Hague, Wednesday, 18 December 2024.
The Netherlands boosts R&D investment by raising the WBSO budget by €100 million in 2025, aiming to enhance technological innovation across industries.
Significant Boost to Innovation Support
The Dutch Ministry of Economic Affairs has confirmed a substantial increase in the WBSO (Research & Development Tax Credit) budget, raising it by €100 million to reach a total of €1.6 billion for 2025 [1]. This enhancement of the Netherlands’ primary innovation scheme aims to make research and development more financially attractive for businesses, covering a portion of wage costs and other necessary R&D expenditures [1].
Enhanced Benefits for Businesses
The 2025 WBSO scheme introduces more favorable parameters for businesses. The first-bracket tax rate will increase from 32% to 36%, while start-ups will see an even more substantial rise from 40% to 50% [1]. The scheme’s first bracket threshold has been set at €380,000 for R&D activities, making it particularly beneficial for both SMEs and larger enterprises [1]. This strategic adjustment aligns with the government’s goal to allocate 3% of GDP to innovation by 2030 [1].
Impact on Dutch Innovation Landscape
The Netherlands has established itself as a prime location for innovation and research, with 90% of its population speaking English and offering strong support for international businesses [2]. Minister Dirk Beljaarts of Economic Affairs emphasizes that increased private investment in innovation is crucial for the country’s future economic health and competitiveness [1]. In 2023, Dutch companies invested a record €8.7 billion in research and development with WBSO support [1], demonstrating the scheme’s effectiveness in stimulating innovation.
Application Process and Deadlines
Companies interested in benefiting from the enhanced WBSO scheme must act quickly, as the deadline for 2025 applications is December 20, 2024 [3]. The scheme is administered through the Netherlands Enterprise Agency (RVO), which provides comprehensive support for the application process [3]. Companies must submit detailed information about their R&D projects and maintain proper administration of their research activities to qualify for the tax benefits [1].