Innovation box

28-06-2017 - Bridge Consulting

The European Code of Conduct Group has approved the Dutch innovation box. This confirms again that the innovation box is internationally accepted as an instrument to stimulate innovative activities by companies. The European Code of Conduct Group checks whether tax measures do not lead to harmful tax competition. The Code of Conduct Group has reported to the Ecofin Council on the results of the testing of the modified patent or innovation boxes to the criteria of the Code of Conduct and the requirements of the nexus approach. The tightened Dutch innovation box has been approved and has not been found to be harmful.

Organic crop protection
The House of Representatives called for the introduction of biological crop protection products under the innovation box last fall and to cover this with a reduction of the percentage of the energy investment allowance (EIA) to 55 percent. Now that approval has been granted, this is done with retroactive effect from 1 January 2017.

Innovation profit and boxtarief
The part of the profit (or cost saving) that is attributable to the innovation function of the company is indicated as innovation profit. The Boxtarief is the effective corporate tax rate that applies to the innovation profit. This rate is 5% from 1 January 2010. Assuming a tax rate of 25%, this means a profit exemption of a maximum of 80%. In the period 2007-2009 the forest rate was 10%. More information:

Ministry of Finance, 28 juni 2017