Tax Benefits

Innovation Box (Innovatiebox): 9% Corporate Tax on Innovation Profit

Updated: 6 October 2026 Holdwise editorial team Innovation box WBSO 9%

The innovation box is a Dutch corporate tax (Vpb) scheme with an effective rate of 9% on profit from qualifying innovations. For technology companies, it is one of the biggest tax benefits.

Short answer

Update 21 September 2026: proposal, final law still pending.

The innovation box is a Dutch tax discount for companies that earn money from their own inventions or software. Qualifying profit is taxed at 9%, below the normal rates. To qualify, you first need a WBSO statement. The WBSO is the Dutch wage subsidy for research and development (R&D). With this statement, you also show that your work counts as innovation. For software companies, the steps are well known. You apply for the WBSO first. You then agree the innovation box split with the Tax Administration. Many technology founders choose the Netherlands for three reasons: the innovation box, the 19% corporate tax rate on lower profits and the holding structure.

At Holdwise, we updated this answer on 2 September 2026 and change it when the rules change.

Update 21 September 2026: proposal, final law still pending.

A higher limit for the simplified innovation tax method

Some profit from technology or other qualifying assets developed by the company can be taxed at an effective 9% rate. This is called the innovation box.

The cabinet proposes to raise the limit for the simplified method from €25,000 to €100,000. Under this method, 25% of the profit still counts as innovation profit, up to that limit. First check whether your company qualifies. A company that develops software qualifies only once it meets the conditions.

Source: the 2027 Tax Plan.

The current scheme in 2026

What is the innovation box?

The innovation box (innovatiebox) is a reduced corporate tax rate of 9% on profit from qualifying innovative work, compared with the normal rates of 19% on the first €200,000 of taxable profit and 25.8% on profit above that. Qualifying activities include software development under the WBSO, patented inventions and other self-developed intangible assets.

The WBSO requirement

Most small and medium-sized companies first need a WBSO declaration. The WBSO is the Dutch tax credit for research and development (R&D). With a valid WBSO declaration, the Netherlands Enterprise Agency (RVO) confirms that the work counts as research and development. Income from assets developed under that declaration qualifies for the innovation box.

How much you save

On €100,000 of qualifying innovation profit, your BV pays 9%, compared with 19%. That is a €10,000 saving per year. On €300,000 of innovation profit, your BV saves €30,000 or more.

Practical requirements

An active WBSO declaration for the development work.
A clear split of costs between innovation work and the rest of the business.
Intellectual property (IP) that your company developed itself, in the Netherlands.
A claim for the innovation box in the annual corporate tax return.

Every Dutch rate related to the innovation box is listed on Netherlands tax rates 2026. This includes corporate tax, VAT and box 2 (the tax on dividends for a BV owner).

The innovation box also applies to a company owned from abroad, if the development takes place in the Dutch company. The first step is to set up that company. See setting up a BV in the Netherlands from abroad.

Whether the innovation box is worth it for your company depends on a calculation with your own figures. You can ask us for it in a written structure review.

Terms on this page

Innovation box: A regime for profit from self-developed, qualifying innovation. The company pays an effective nine percent corporate tax on this profit, lower than the regular rate. You usually get access with a WBSO R&D declaration.
Corporate income tax (VPB): The profit tax of a BV, levied in two brackets over taxable profit per financial year. The current brackets and thresholds are on the figures page.
BV (besloten vennootschap): The Dutch private limited company. It is a legal entity with registered shares and limited liability. The shareholder’s private assets are separate from the company’s debts. The BV is set up with a notarial deed. The minimum capital is €0.01.

All terms in the glossary →

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Part of Doing Business in the Netherlands, the complete 2026 guide.

Sources Belastingdienst · KVK · wetten.overheid.nl Last updated: 6 October 2026