Effective tax rate

Our Dutch group is an integral part of PwC global pharmaceuticals and life sciences practice. We provide a wide range of tax services to pharmaceutical and life science companies. The following tax incentives could be of interest for your company.

The Innovation Box is a measure with the goal of stimulating R&D activities and the ownership of IP by reducing the corporate income tax rate to 5%. The Innovation Box can be applied to income related to IP owned by the taxpayer and for which a patent has been or will be granted and in case of technical innovation (even if no patent is obtained).

The WBSO (Research & Development Promotion Act) is a tax incentive which results in a discount on wage tax. The financial benefit may consist of a discount on wage tax.

The RDA (Research & Development Allowance) offers a deduction for income tax or corporate income tax purposes for costs (excluding labor costs) made for the benefit of (and directly attributable to) own R&D activities. If the activities fall under the application of the WBSO, they may also be eligible for the RDA. The benefit is the deduction of 54% (2013 percentage) of the total qualifying RDA costs.

There are tax aspects related to (the transfer of) Intellectual Property (IP) and licensing. E.g. depreciation of IP, the tax consequences of transferring of the IP (abroad), the valuation of the IP and the license fees, the levy of withholding taxes on royalties (tax treaty benefits).