WILLEMSTAD - The government has announced the ministerial regulation that regulates the conditions a company must meet in order to be eligible for a tax advantage with regard to research and development study (R&D).
Research and development study is a tax arrangement with which the government encourages innovation. This arrangement was already introduced in 2019, but until now it was not exactly clear what the requirements are a company must meet in order to be eligible for it.
Companies can receive an R&D statement if they develop innovative products and have to do research for this. This does not always have to be a physical product, but it can also concern websites or royalties, for example. One of the requirements is that the product is new and innovative.
Innovative companies can benefit from a tax advantage from this R&D arrangement. Part of the profit of the product is exempt from the profit tax.
If business owners want to register as a company, they must include a project description. Describe in their own words what has been developed and what the purpose of the project is. Examples of the activities must also be provided with the application. Furthermore, a description must be given of three phases; the design phase, building the prototype and testing the prototype. Any possible collaborations with other companies must also be reported.
In addition, the innovative company will have to pass on technical bottlenecks, technical solutions, technical novelty, and technical-scientific research. Furthermore, the ministerial regulation mentions transparency of the company about the costs and/or expenses of the product and about any development of software.
The application is then submitted to Bureau Telecommunication and Post. They will assess whether a company qualifies for the R&D statement.