Innovation (Royalty) Box amended by Dutch legislator, creating a 5% taxation on qualifying royalty income.

The 2010 tax plan of the Dutch legislator has become effective per January 1, 2010. One of the most striking changes is the amendment of the so-called Royalty Box, which has now been converted into the Innovation Box.

As a result, income from the exploitation of self produced intangible assets is taxed at an effective rate of only 5%. Contrary to the former arrangement, there is no maximum for the amount of income anymore. The Innovation Box is only applicable on positive income, negative income is tax deductible at the ordinary tax rates of 20-25,5%.

For more info mail to: hans.van.engelen@independium.com