Deduction Research and Development

Deduction Research and Development: What is the Law Improvement Research and Development (WBSO)?

To improve product innovation, the Dutch government developed the Law Improvement Research and Development, or ‘WBSO’.

Due to this law -as an entrepreneur- you might be entitled to fiscal advantages to improve research and development. The regulation is part of the deduction for entrepreneurial expenses*. 

Would you like to know if you are eligible for cost reduction regulations in the WBSO? In this article we will briefly explain what conditions you need to meet and what reductions you could be entitled to. 

Conditions for deduction Research and Development

You will receive the reduction for research and development if you: 

  • Have worked as an entrepreneur for at least 1.225 hours per calendar year. 
  • Have spent at least 500 hours to recognized research and development activities
  • Have a Research- and Development Statement of the


With the WBSO you can claim various regulations. For example, you can get a reduction in payroll taxes. The WBSO can also partly compensate for costs and expenses. The government has made €1.281 million available in 2020. 

To make use of the WBSO reduction you will have to apply for it prior to the research and development work. 

Do you think these regulations apply to your activities? Read more about the application procedure here*. 

Final notes

Brexit does not have any consequences for the regulation levy reduction for research and development. It will still apply for activities that have been performed in the United Kingdom. 

You do not get a reduction for research and development over the profit you are entitled to. Nor are you entitled to the reduction as a financier. 

Learn more? 

Read more on the website of the Tax Authorities* if you want to be eligible for the levy deduction research and development work. Are you just starting? Then you may be entitled to a higher reduction WBSO. Check out the English website of the Netherlands Enterprise Agency at

Lexlupa is a multidisciplinary effort of fiscal, legal and economic experts. We give advice and guidance to companies, institutions and private individuals at  life events.  Lexlupa  helps you to make well-informed choices in business and personal affairs, and we support you in managing your business in the best possible way.

*Do you need help navigating the Dutch pages? Please contact us.