Context and Background
Quantera Global was engaged by a Dutch-headquartered multinational enterprise (MNE) with over €100 million in annual revenue. Despite being highly innovative and profitable, the client had discontinued use of the Innovation Box regime, a Dutch tax incentive that offers reduced effective tax rates on qualifying profits derived from innovative activities.
Their decision to step away from the regime stemmed from a previous negative experience, where their WBSO-hour submissions (a key requirement for Innovation Box eligibility) led to substantial corrections. Among to this the MNE was reluctant to spend time on their future WBS-hour submissions. Furthermore, the Dutch tax authorities were hesitant to reengage given the MNE’s earlier decision to discontinue the Innovation Box.
Recognizing the client’s genuine innovation capacity and the strategic value of the Innovation Box, Quantera Global was brought in, to the assist the client with the Innovation Box and to rebuild trust with the tax authorities and secure a ruling that would unlock significant tax benefits.
Quantera Global’s Role and Strategic Contribution
Led by Maikel Verhoeven and Emile Monfils, Quantera Global:
- Evaluated and repositioned the client’s innovation profile, including linking new qualifying products to their existing IP portfolio.
- Built a narrative that clearly demonstrated broader R&D efforts, despite previously low WBSO-hour declarations.
- Facilitated collaboration with a trusted partner firm that helped the client accurately reassess and increase their WBSO-hour reporting.
- Negotiated a custom ruling with the Dutch tax authorities that introduced a flexible structure: as WBSO-hours increased, the percentage of profits qualifying under the Innovation Box would also increase.
This not only helped regain credibility with the authorities but also provided the client with a scalable, performance-aligned tax benefit.
Strategic Challenges
- The client had a history of limited WBSO-hour reporting, creating doubts about eligibility.
- Tax authorities were initially reluctant to cooperate due to the client’s earlier withdrawal.
- The project required a delicate balance between regulatory expectations and commercial innovation realities.
- There was a need to quantify and connect innovation efforts across multiple business lines to the Innovation Box framework.
Outcome delivered
Quantera Global successfully:
- Secured an Innovation Box ruling that will save the client millions in taxation, a material amount relative to their size.
- Created a dynamic mechanism where the benefit scales with the company’s investment in innovation.
- Stimulated increased R&D activity in the Netherlands, aligning with national policy goals.
- Restored the client’s strategic engagement with Dutch innovation incentives, creating a long-term value lever.
Why This Matter Was Significant
This case demonstrates how perception and underreporting can lead innovative companies to miss major fiscal opportunities. By reassessing and realigning the client’s innovation profile, Quantera Global:
- Reversed a negative regulatory position into a high-impact, high-trust ruling.
- Used strategic collaboration to expand WBSO qualification and restore incentive eligibility.
- Delivered both financial benefit and structural compliance improvement, creating shared value for the client and tax authorities.
This matter exemplifies how a holistic, narrative-driven TP and innovation approach can unlock overlooked opportunities in even the most challenging contexts.
Ready to turn the Innovation Box from a risk into a scalable value lever?
Quantera Global helps Dutch-headquartered groups reassess their innovation profile, reconnect WBSO-hour reporting with real R&D activity, and rebuild trust with the tax authorities. We map products to IP, structure a credible innovation narrative, coordinate with specialist WBSO partners, and negotiate tailored Innovation Box rulings where benefits grow in line with your actual innovation efforts. The result: material, recurring tax savings, stronger compliance, and a clearer link between your R&D strategy and fiscal incentives.
Let’s align your Innovation Box strategy with your innovation reality. Contact us here.