Tax facilities for innovation
There are various possibilities for facilitating innovations. The Netherlands has the following available: the Research & Development Tax Deduction (RDA), the wage subsidy scheme (WBSO) and the reduced tax rate on revenue from innovations (Innovatiebox). If you as an American entrepreneur invest in a Dutch company, you can also utilize the innovation facilities. For example, you can receive a subsidy or a tax rebate for developing innovations, or obtain a lower taxation for exploiting an innovation.
Example: Imagine that, with your American company, you invest in a Dutch company. Then it is possible to receive subsidies pursuant to the RDA. In addition, you can reduce the wage costs by means of the WBSO, after which, with the innovation box, you receive a lower rate of taxation when you sell your innovation.
Doing business in the Netherlands
In collaboration with our advisors in the USA, you receive advice from us about the appropriate company structure and possibilities. The International Business Help Desk USA advisors can help you further in the area of audit, tax, compliance, pay-roll, legal advice and expat services. The Netherlands is not just suitable due to the advantageous tax system, but it is also suitable as a starting point for exploring Europe.
The Netherlands has an excellent international network of treaties. This means that if you as an entrepreneur set up business in the Netherlands, you are not eligible for source taxation or you are eligible for a lower source taxation for a dividend. In the Netherlands, no source tax is applied to royalties and interest. You can use the Netherlands as a conduit, by efficiently streamlining your worldwide cash flows in interest, dividend or royalties tax, so that double taxation is at least avoided.
Baker Tilly International
Our international network provides multiple tax and country guides. You can download the Netherlands Country Tax Guide, Netherlands Transfer Pricing Guide and Netherlands Indirect Tax Guide on Bakertillyinternational.com.
Are you as an entrepreneur seeking advice about doing business in the Netherlands or Europe? Or are you looking for an advisor who can support you in starting up a company in the Netherlands? Please contact the International Help Desk USA of Baker Tilly Berk via USAdesk@bakertillyberk.com.
Research and Development Incentive Overview
Baker Tilly International member firms have consolidated a high level overview of key considerations across multiple jurisdictions for businesses.
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