TAX BENEFIT ON INNOVATION PROFIT · CURRENT FOR 2026
Innovation box: conditions, 9% rate and tax benefit
The innovation box (Innovatiebox) is a fiscal scheme within corporate income tax with which qualifying benefits from self-developed innovative intangible assets at an effective rate of 9% can be taxed. The regular corporate income tax rate is 19% in 2026 up to €200,000 taxable profit and 25.8% above. For access to the innovation box, the R&D declaration (S&O-verklaring) from the WBSO plays a central role.
BY PETER KLAREN · LAST CHECKED SEPTEMBER 2026 · SOURCE: DUTCH TAX ADMINISTRATION
New: innovation box facility possibly rising to €100,000 in 2027
The government proposes to increase the maximum deemed innovation box benefit per 1 January 2027 from €25,000 to €100,000. Under the proposal, the facility remains 25% of profit and can be used for a maximum of three years. The legislative amendment has been submitted with the 2027 Tax Plan and still has to be dealt with by the House of Representatives and the Senate — so it is not yet final.
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Innovation box 2026 at a glance
| Item | 2026 |
|---|---|
| Effective innovation box rate | 9% |
| Regular corporate income tax rate up to €200,000 | 19% |
| Regular rate above €200,000 | 25.8% |
| Facility | 25% of profit |
| Maximum deemed innovation box benefit | €25,000 (proposed: €100,000 as of 2027) |
| Facility applicable | Year of creation + the following 2 years |
| Smaller taxpayer | An R&D declaration can provide sufficient access |
| Larger taxpayer | R&D declaration + additional qualifying access instrument |
| Sole proprietorship / general partnership | Not possible — only within corporate income tax |
What is the innovation box?
WBSO determines whether technical development work qualifies; with the innovation box a second question then begins: which self-developed intangible asset has been created and which part of the profit is genuinely attributable to that innovation?
WBSO
Lowers development costs: payroll tax reduction on wage tax during the R&D work.
Innovation box
Lowers tax on innovation profit: 9% instead of 19% or 25.8% on the qualifying benefit.
Both schemes can be applied to the same innovation: first WBSO during development, then the innovation box as soon as the asset generates profit. See the WBSO pillar for the application side.
WBSO and the innovation box reinforce each other
For most companies, the R&D declaration from the WBSO is the entry ticket to the innovation box. Without an R&D declaration, access is in principle only possible via other qualifying access instruments, such as a patent.
Important systemic difference: with WBSO, RVO assesses in advance whether your work plan qualifies. With the innovation box, you decide yourself when to apply the scheme, and the Dutch Tax and Customs Administration (Belastingdienst) mainly assesses afterwards — during an audit or advance consultation — whether the conditions are met.
Which assets qualify for the innovation box?
The innovation box concerns the intangible asset that results from your own development, for example:
- self-developed software;
- patented technology;
- qualifying technical knowledge and development activities;
- other qualifying intangible assets.
For larger taxpayers, additional qualifying access instruments apply, such as software, patents, plant breeders' rights and medicinal product licences.
Self-created is essential
The Tax and Customs Administration requires that your company has created the intangible asset itself and has carried out the R&D at its own expense and risk. A purchased asset does not simply qualify.
| Situation | Innovation box? |
|---|---|
| Self-developed software with R&D declaration | possible |
| Self-developed technology | possible |
| Existing software purchased and used unchanged | no |
| Purchased technology, subsequently substantially further developed into a new asset | possible, only for the new part |
| Development fully outsourced | depends on functions, risk and structure |
Smaller or larger taxpayer?
The size of your company determines how strict the access requirements are.
| Smaller taxpayer | Larger taxpayer | |
|---|---|---|
| R&D declaration | required | required |
| Extra access requirement | in principle not | yes |
| Possible additional access instruments | — | software, patent, plant breeders' right, medicinal product licence etc. |
| Gross benefit | < €37.5 million over 5 years | above the threshold |
| Net turnover | ≤ €250 million over 5 years | above the threshold |
Good news for software companies: for larger taxpayers, software is independently one of the additional qualifying access instruments. A patent is therefore not always required.
How do you apply for the innovation box?
For the innovation box, you do not have to submit a separate application to RVO as with WBSO. You opt to apply it in the corporate income tax return over the first year in which you want to use the scheme. That is still possible as long as the assessment for that year is not yet final and conclusive.
For more complex or material positions, advance consultation with the Tax and Customs Administration can be held about, for example, qualifying assets, profit attribution and the method used. Advance consultation is possible, but not always mandatory — see advance consultation.
When may you apply the innovation box?
The moment of creation is decisive: the year in which the qualifying intangible asset is completed. From that moment, the benefit can fall within the innovation box — provided the threshold has been passed.
The scheme can be applied to future benefits, but also to benefits already enjoyed after creation but before the choice for the innovation box — as long as the assessment is not yet final and conclusive.
The box threshold: first recoup development costs
Benefits only fall within the innovation box insofar as they exceed the development costs still to be recouped and any innovation losses.
Box threshold example
Innovation benefit year 1: €100,000
→ €50,000 still to be recouped
Innovation benefit year 2: €200,000
→ first €50,000 counts towards the threshold
→ remaining €150,000 can fall within the innovation box
How is innovation profit determined?
Not all profit is innovation profit. Marketing, sales, brand value, consultancy and customer success also contribute to your results. Only the part attributable to the qualifying innovation falls within the innovation box.
↓ deduct / attribute to
routine functions · sales & marketing · brand/organisation · services
↓ remaining contribution
R&D / qualifying technology
↓
possible innovation box benefit (9%)
The Tax and Customs Administration uses functional analyses for this: what contribution does R&D make versus other business functions? That is exactly what the public innovation box rulings make visible.
Example calculation: how large is the benefit?
Simplified marginal example at €500,000 qualifying benefit
At the regular 25.8% rate: €129,000 tax
In the innovation box (9%): €45,000 tax
Benefit: €84,000 per year
Note: this example assumes that the qualifying benefit would otherwise be taxed at the 25.8% rate (above the first €200,000 of profit). If the benefit would otherwise fall under the 19% rate, the difference with the 9% innovation box is 10 percentage points instead of 16.8.
The facility for SMEs
Do you not want to substantiate the profit attribution extensively? Then you can choose the facility: 25% of profit is then deemed to be qualifying innovation benefit, subject to a maximum.
| Item | Scheme |
|---|---|
| Deemed percentage | 25% of profit |
| Maximum qualifying benefit | €25,000 per taxpayer per year |
| Applicable | Year of creation + 2 following years (max. 3 years) |
| Offer 2027 | Proposal: maximum raised to €100,000 — not yet final |
| Avoidance of double benefit | No combination with another innovation box application for the same benefit |
The facility is attractive for companies with limited accounting substantiation of profit attribution. As innovation profit grows, a substantiated attribution can yield more than the facility maximum.
Innovation box for software companies
Self-developed software is one of the most common qualifying assets in the innovation box.
- the software must result from your own R&D work;
- for smaller taxpayers, the R&D declaration in principle provides access;
- for larger taxpayers, software is independently a qualifying access instrument;
- profit attribution determines how much of the SaaS or licence revenue falls within the box.
See also WBSO for software.
Outsourced R&D and the nexus rule
If your company outsources a relevant part of R&D, especially within a group, this can affect the qualifying innovation box benefit.
In larger or international structures, it is not only about who legal owner is of the technology, but also where the R&D functions, costs and risks are located. The nexus rules can correct the part of the benefits that falls within the innovation box.
What records does the innovation box require?
Your records must show:
- which qualifying intangible assets exist;
- how much benefit has been achieved with them;
- how that benefit was determined (profit attribution or facility);
- that smaller taxpayers comply with the conditions that apply to them.
The WBSO records you keep anyway — hours, projects and costs — form a good basis for this, but the innovation box additionally requires profit data per asset.
Advance consultation with the Tax and Customs Administration
For more complex positions — multiple assets, major profit attribution questions, outsourced R&D or international structures — advance consultation with the Tax and Customs Administration can provide certainty about the application of the innovation box before you complete the return.
Advance consultation is not always mandatory, but can prevent much discussion afterwards. Rule of thumb: the larger the qualifying benefit and the more complex the profit attribution, the more valuable prior consultation.
Might your company qualify?
Tick what applies to your company:
4 or more boxes ticked? Then an innovation box scan can deliver relevant savings. This is an indicative qualification, not a legal opinion.
Frequently asked questions about the innovation box
How do I apply for the innovation box?
Can a sole proprietor or self-employed professional use the innovation box?
What is the innovation box threshold?
What is the facility in 2026?
What changes in 2027?
What happens with innovation losses?
May R&D be outsourced?
Is a patent required for the innovation box?
How much innovation profit can you tax at 9%?
We assess your qualifying assets, the profit attribution and whether the facility or a substantiated attribution yields more — and, if necessary, coordinate the advance consultation with the Tax and Customs Administration.
SOURCES AND SUBSTANTIVE REVIEW
Tax and Customs Administration — Innovation box
Reviewed by Peter Klaren, WBSO specialist since 2004. Last substantively updated: 21 September 2026.