Upcoming Dutch Elections to Shape Future of Innovation Tax Policies
Amsterdam, Tuesday, 21 October 2025.
The national elections in the Netherlands on 29 October 2025 will significantly impact innovation tax incentives, as political parties debate the future of the innovation box and R&D wage tax credits.
Diverging Party Stances on Tax Incentives
As the Dutch elections approach on 29 October 2025, political parties in the Netherlands are presenting varied perspectives on innovation tax incentives, which include the innovation box and the R&D wage tax credit (WBSO) [1]. The innovation box allows qualifying income from self-developed intangible assets to be taxed at a reduced rate of 9%, compared to the regular corporate tax rates of 19% to 25.8% in 2025 [1]. Parties such as VVD, NSC, CDA, and BBB support maintaining the current regime, with BBB even suggesting further expansion. Conversely, GroenLinks, PvdA, and SP are in favor of abolishing or significantly limiting this scheme [1].
The R&D Wage Tax Credit in Focus
The R&D wage tax credit is another critical component of the innovation tax incentives under discussion. This credit offers a rebate of 36% on the first €380,000 of R&D costs, and 16% for amounts beyond that, with start-ups receiving 50% on the initial €380,000 [1]. Most political parties favor either maintaining or increasing the budget for this credit, with CU proposing to raise the R&D cost base to €500,000, and Volt suggesting its extension to cover open-source software development. However, JA21 diverges by proposing the credit’s abolition and advocating for direct deductibility of R&D-related business expenses [1].
Impact on Innovation and Economic Strategy
The outcome of these elections will shape the future of innovation tax policies, directly impacting the Netherlands’ competitive edge as a hub for innovation. The current favorable tax environment, bolstered by incentives like the innovation box and R&D tax credits, positions the Netherlands as an attractive location for innovative companies. However, the proposed changes by some parties could alter this landscape significantly [2]. This debate is part of broader discussions on balancing innovation policy with budgetary constraints, which will be pivotal in coalition negotiations post-election [1].
Looking Ahead: Post-Election Scenarios
The impending elections hold significant implications for the Netherlands’ innovation landscape. Depending on the election outcomes and subsequent coalition agreements, the direction of innovation tax policies could either bolster the current support mechanisms or lead to their reduction or restructuring. Stakeholders in the innovation sector are keenly watching these developments, given the substantial role these incentives play in supporting research and development activities [1][2]. The decisions made in these elections will set the trajectory for the country’s economic and innovation policies for years to come.