As part of changes to tax legislation in the context of “working toward profit” the government introduced a tax regime designed to stimulate innovation. This regime came into force in 2007 and has since been modified a number of times. At this moment it is possible to pay corporation tax at a reduced rate (5% instead of the usual 20/25%). The conditions for making use of this tax regime is that application has been made for patent on the innovation in question and that profit is made which is attributable to this innovation. A specific ruling must be agreed in advance with the tax authorities. Since 2008 an R&D declaration (a declaration of research and development work issued by the Netherlands Enterprise Agency) can also be used for participation in this regime. In order to make use of the Innovation Box regime it would be advisable to make contact with an accountant/tax specialist expert in this field.