Innovation Box Explained: 9% Tax on Innovation Profit (2026)
Manna Team
Alongside the WBSO, the innovation box (innovatiebox) is one of the most important tax incentives for innovative companies in the Netherlands. Where the WBSO lowers your R&D wage costs, the innovation box lowers the tax on the profit you make from that innovation. This article explains how it works and how it connects to your WBSO. Not applying for WBSO yet? Start with the complete guide to applying for WBSO.
What is the innovation box?
The innovation box is a scheme within corporate income tax (vpb). Profit attributable to innovative activities is taxed at a reduced rate of 9%, instead of the regular corporate tax rate. That makes a significant difference for companies that earn profit from self-developed technology.
Conditions: the role of the WBSO
To use the innovation box you need an entry ticket. For most SMEs that is an S&O declaration (WBSO). This means:
- You applied for WBSO and received an S&O declaration for the intangible asset (the innovation).
- You may place part of the profit you earn from that innovation in the innovation box.
Larger companies often need an additional ticket alongside the S&O declaration (for example a patent). So the WBSO is valuable not only on its own, but also as the key to the innovation box.
WBSO and innovation box: the interplay
| Scheme | Reduces | Timing |
|---|---|---|
| WBSO | R&D wage costs (payroll tax) | During development |
| Innovation box | Tax on innovation profit (corporate tax) | When the innovation generates profit |
Together they cover the whole lifecycle: the WBSO helps you during development, the innovation box once your product earns money.
Is the innovation box right for you?
The innovation box is especially attractive if you have profitable products or software that stem from your own R&D. Because attributing profit to innovation is complex, you usually work on this with your accountant or tax adviser. The first step, however, is always a solid WBSO application.
- Read the complete guide: applying for WBSO
- See how Manna automates your WBSO
- Calculate your WBSO benefit 2026
This article is informational and not tax advice. Consult the Dutch Tax Administration and your adviser for your situation.
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