How it works
A company that develops its own technology, software or products can put the profit from that innovation in the innovation box. The profit in the box is taxed at an effective 9%. The rest of the profit is taxed at the normal rates.
The first step is an R&D declaration under the WBSO scheme. The Netherlands Enterprise Agency (RVO) grants this declaration for development projects. Larger companies also need a patent, a plant breeder’s right or software with proven innovation. The company and the tax authority agree how much of the profit comes from the innovation. They usually agree this in a ruling for several years.
Small companies can use a flat-rate option. They then put a fixed part of the profit in the box. In 2026 this option applies up to €25,000. Under the Tax Plan, this amount rises to €100,000 in 2027.
Foreign-owned companies can also use the box, when the development takes place in the Dutch company. Software companies with their developers in the Netherlands are the largest group of users.
Example
A software BV has €400,000 profit, of which €300,000 comes from its own platform developed under a WBSO declaration. Only 9/25.8 of the €300,000 counts as taxable profit: €104,651. With the other €100,000, the taxable profit is €204,651. The tax is about €39,200: 19% on the first €200,000 and 25.8% on the rest. At the normal rates, the tax would have been €89,600.
The figures
Every rate for 2026 is listed in Netherlands tax rates 2026, and the figures for 2027 are in Netherlands tax rates 2027.
Questions people ask
Does bought-in software qualify?
The box is for innovation the company developed itself, with its own staff or under its own direction. Bought software falls outside it.
How much of the profit can the company put in the box?
The part of the profit that comes from the innovation. The company agrees this part with the tax authority. They usually use a percentage of the profit or a method based on the R&D costs. The agreement lasts several years.
Holdwise, Hoofddorp. We keep this definition in line with our Dutch and German glossaries, and the figures are those for the tax year 2026. Updated 30 September 2026.
Want our team to have a look?
We help entrepreneurs and international companies with their company in the Netherlands and Europe. Tell us about your situation or your plans. Our team looks at it and replies with the next step.