The Dutch government offers several subsidies for innovative companies. This makes it attractive for foreign companies to have a Dutch entity. ‘B.V.’ is the Dutch name for a Ltd, LLC, GMBH, short for ‘Besloten Vennootschap’. The best-known examples of such subsidies are the innovation box and the S & O subsidy.
Innovation box and S&O subsidy
S & O stands for Search & Development work (in Dutch: Speur- en Ontwikkelingswerk). Sources explaining this subsidy are often written in Dutch, without an English translation. To help you understand what the subsidy means, we provide a short explanation below.
The Dutch government has established strict rules one needs to meet to qualify for the S & O subsidy. The subsidy can save a company a lot of money, by cutting on salary taxes.
After you successfully applied for the S & O subsidy you might be able to apply for the innovation box as well. This is a really interesting subsidy as the innovation profit tax is only 7% instead of the normal 20-25% taxes.
If you are wondering whether your company can take advantage of these fiscal benefits, we would be happy to connect you to one of our legal partners.