The R&D promotion act provides a fiscal facility for companies, knowledge centres and self-employed persons who perform R&D work. In this context, R&D means technical/scientific research, the development of technologically new physical products or physical production processes (or parts thereof) and the development of technologically new software (or parts thereof). Non-companies qualify only if they perform R&D on the instructions and at the expense of a Dutch company.
Under the WBSO-scheme (R&D payroll tax allowance) part of salary costs can be reduced by paying less payroll tax. Self-employed professionals can benefit from a fixed deduction from their income tax. Start-up business persons are given an extra payment for research and development work.
