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Doing business in the Netherlands 215. SubsidiesThe Dutch government offers anumber of incentive schemes in varioussectors to support companies intheir business operations. Foreign entrepreneurswho set up companies in theNetherlands and who register their companieswith the Trade Register of the Chamber ofCommerce can also apply for a number of incentiveschemes.The most important subsidy agency in theNetherlands is RVO (previously AgentschapNL),which is based in The Hague. The latter organization isresponsible for the execution of most of the schemesavailable in the Netherlands. In addition, there are alsoa number of important regional and provincialschemes available, as well as a number of internationalschemes offered by the Ministry of ForeignAffairs, the Ministry of Economic Affairs and Brussels.This section will outline a number of the schemesthat are currently available. Obviously this is not anexhaustive list, so we recommend that you contactyour consultant for more detailed information.5.1 Innovation subsidiesTop Sector policyThe Dutch government has defined 9 Top Sectors inwhich the Netherlands is strong worldwide and towhich the government is paying special attention. TheTop Sectors are: AgroFood, Horticulture, High Tech,Energy, Logistics, Creative Industry, Life Sciences,Chemicals and Water. More venture capital and extrafiscal support should ensure more research anddevelopment in companies and institutions that fallwithin the above sectors. To achieve this, each topsector has signed an innovation contract in a PPSarrangement with the Dutch government, setting outthe innovation agenda. In 2014 special programs(MIT-programs) will open for SMEs in each TopSector for feasibility studies, research and development,cooperation arrangements and researchvouchers. If you are active in or with a project in a TopSector, contact your adviser about the current subsidyoptions.WBSO (Wet Bevordering Speur & Ontwikkeling)WBSO stands for the Dutch Research and DevelopmentAct. Technological innovation is extremelyimportant. The competitor never rests. The WBSOwill help you if you wish to renew your technicalprocesses or develop new technical products orsoftware. The WBSO is a tax incentive scheme thatforms part of the compensation of salary and wageexpenditures for research and development work.RDA (Research & Development Allowance)The RDA is for businesses that want to carry out researchand development work. The RDA is intendedto reduce the financial burdens of research and developmentwork. The WBSO provides a tax incentivefor the hours worked or labour costs in the wagetax return. For other costs, such as the purchaseof equipment, the RDA applies. The RDA offers atax benefit, namely an allowance in the income taxor corporate tax return. You are only eligible forthe RDA if you also apply for the WBSO incentivescheme (see also section 5).Innovation boxThe innovation box provides for a special tax regimefor innovation profits to stimulate R&D-activities.This regime is explained under section 5.5.2 Regional subsidiesUnder the European EFRD (European Fund for RegionalDevelopment) programme for 2007-2013,different regions in the Netherlands are conductingtheir own incentive policy. For 2014-2020 a newEFRD programme is underway. Within this new programmethe focus will be on subsidising projects oninnovation and research, digital agenda, SME supportand low-carbon economy. The various regionsin the Netherlands have drafted various incentiveplans under this new programme. The regionalprogrammes are in the process of approval by theEU Commission. The subsidy programmes for 2014-2020 are expected to start in the fall of 2014.5.3 InvestmentsMIA (Milieu Investerings Aftrek) (Environment InvestmentDeduction Scheme)The purpose of the Environment Investment Deductionscheme (MIA) is to stimulate investment inenvironmentally friendly capital equipment. Companiesthat invest in the environment are entitledto additional tax deductions at a percentage of theinvestment cost. The Environment Investment Deductionscheme is only available for capital equipmentlisted on the Environment List 2014 (Milieulijst2014), which is updated on an annual basis.