Innovation box
The Innovation Box regime encourages entrepreneurs to invest in innovative research by taxing profits from innovative activities (Research & Development, or R&D) at a reduced corporate income tax rate. An effective corporate income tax rate of 9% applies to the portion of the profit designated as R&D profit. In practice, it involves more than just calculations. Access requires at least a WBSO (Funding for Tax and Customs Administration) decision. For larger companies, a patent or other protection right is often also required.
From rulings to full alignment with TP documentation
NovioTax is frequently asked for second opinions on innovation box positions: from convincingly substantiating the position for the tax authorities (preliminary consultation/ruling) to reviewing and refining existing agreements. Our transfer pricing expertise is a strong asset in this regard. Correct profit allocation to R&D is generally possible only when remuneration for functions such as sales, production, and distribution has also been determined at arm’s length. This ensures that precisely that portion of the profit remains that can be tax-efficiently allocated to the Innovation Box. We model P&L and tax effects, value intangible assets (if necessary), and ensure consistency between innovation box agreements and TP documentation (Master/Local file). Therefore, you can rely on NovioTax for a pragmatic, well-founded, and fiscally sound approach.
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