RJ 274: government grants in annual accounts
A grant on wages, a contribution to an investment, a loan at a low interest rate or a payment per megawatt hour produced: RJ 274 says when you recognise such a benefit, in which year and on which line.
The short answer
RJ 274 governs grants and other government support. You recognise a grant as soon as it is reasonably certain that you meet the conditions and will receive the money. An operating grant belongs to the year of the costs or the lost income; an investment grant is released over the useful life of the asset. Support through taxes on profit falls under RJ 272.
Updated 30 October 2026
Key facts
| Guideline | RJ 274 Government grants and other forms of government support; for micro and small entities RJk B17 |
| In force | Unchanged since the version for financial years from 1 January 2022; no difference between 2025, 2026 and 2027 |
| Moment of recognition | Reasonable certainty about the conditions and receipt (RJ 274.107; RJk B17.107) |
| Notes | Nature, treatment and size (RJ 274.121); for small entities the method of recognition and contingent liabilities from development credits (RJk B17.116) |
Four kinds of support
| Kind | What it is | Where it goes |
|---|---|---|
| Operating grant | A contribution to costs of the year (wages, training, export) or to lost income or a deficit | In the year of the costs or the loss (RJ 274.108) |
| Investment grant | A contribution to an asset that lasts several years | Received in advance under accrued liabilities or as a deduction from the asset; released over the useful life (RJ 274.112 and 113) |
| Financing facility | A credit with subordination, conditional forgiveness or a low interest rate | The credit is a liability; a forgiveness or the interest benefit is a grant (RJ 274.109 and 110) |
| Development credit | Credit for development that is forgiven on failure | If repayment depends on turnover or result of the project, you deduct the receipts from the development costs and repayment and interest are cost of sales (RJ 274.111a) |
Support that reduces taxes on profit, such as an investment deduction in corporate income tax, is not a grant in this sense. The benefit runs through the taxes line, at once or spread over a number of years (RJ 274.117 and 118), and can make the effective tax rate differ; see RJ 272.
When and how you recognise a grant
The moment is neither receipt nor application. You recognise the grant as soon as it is reasonably certain that the BV meets the conditions and will also receive the amount (RJ 274.107). An award decision helps, but as long as you still have to carry out the activities, only the part that relates to costs already incurred counts. An advance you receive above that is a liability. A repayment after final determination, as many employers experienced under the NOW schemes from 2020 to 2022, you recognise as soon as it is probable.
You may show an operating grant on costs as income, for example under other operating income, or deduct it from the costs it belongs to. The first presentation shows the gross costs, the second shows what the activity costs the BV net. A grant for lost income or an operating deficit is always shown with the income (RJ 274.111). Choose one presentation and keep to it.
A loan at an interest rate below the market rate you recognise under RJ 274.110 at fair value; the difference from the amount received is a grant. The small entity may recognise the loan at nominal value if the grant still ends up in the right year (RJk B17.110).
Case: WBSO at a robot builder
The WBSO is a reduction of the payroll taxes to be remitted for research and development work (S&O-afdrachtvermindering). RVO (the Netherlands Enterprise Agency) awards it on behalf of the Ministry of Economic Affairs; the employer offsets it in the payroll tax return. For 2026 it is 36% on the first bracket of the R&D basis up to € 391.020 (50% for starters) and 16% above that. Because it reduces payroll tax and not taxes on profit, it falls under RJ 274 as an operating grant on wage costs.
Robotica Twente BV has an R&D basis of € 150.000 in 2026, only in the first bracket, with an R&D statement and hours registered as RVO requires. The remittance reduction is 36% × € 150.000 = € 54.000. The wage costs for the year are € 400.000.
| Presentation | Wages and salaries | Other operating income | Effect on the result |
|---|---|---|---|
| As income | € 400.000 | € 54.000 | − € 346.000 |
| Deducted from costs | € 346.000 | – | − € 346.000 |
Around the year-end, the BV counts only R&D hours worked in the year. If hours turn out not to qualify, that part of the reduction lapses and is shown as a liability.
Case: SDE++ at a solar park
With the SDE++ the government pays part of the cost of renewable energy or CO2 reduction per unit produced. The holder receives advances; RVO adjusts the amount annually and then determines it finally. Because the grant tops up lost income, it is shown with the income.
Zonnepark Hooge Akker BV produces 4.000 MWh in 2025. After the annual correction for the energy price it is entitled to € 18 per MWh, so € 72.000. It received € 80.000 in advances. The 2025 annual accounts show € 72.000 of grant in income and € 8.000 as a liability to RVO, to be repaid or offset against later advances. If the entitlement is still uncertain at the balance sheet date, for example because production has not been measured, the BV recognises only the reasonably certain part.
Case: grant on a machine
Drukkerij Lindeboom BV buys an energy-efficient press of € 150.000 with a useful life of ten years on 1 January 2025 and receives an investment grant of € 30.000. Both presentations give the same result:
| Grant received in advance | Deducted from the asset | |
|---|---|---|
| Carrying amount of press 1-1-2025 | € 150.000 | € 120.000 |
| Depreciation 2025 | € 15.000 | € 12.000 |
| Release of grant 2025 | € 3.000 | – |
| Net charge 2025 | € 12.000 | € 12.000 |
| On the balance sheet 31-12-2025 | Press € 135.000; accrued liability € 27.000 | Press € 108.000 |
If Lindeboom has to repay the grant should it sell the press within five years, that is a contingent liability that it discloses as long as a sale is not probable.
Per size class
| Class | Recognition | Notes |
|---|---|---|
| Micro (assets ≤ € 450.000, net turnover ≤ € 900.000, < 10 employees) | RJk B17 via the rules for small | None; note the conditions of the grantor itself, which often require an account or auditor's statement |
| Small (assets ≤ € 7,5 mln, net turnover ≤ € 15 mln, < 50 employees) | RJk B17; a loan below the market rate may be at nominal value (B17.110) | Method of recognition (art. 2:384(5) DCC) and contingent liabilities from development credits (art. 2:381(1) DCC) |
| Medium-sized (assets ≤ € 25 mln, net turnover ≤ € 50 mln, < 250 employees) | RJ 274 | Nature, treatment and size of the support recognised and the contingent liabilities (RJ 274.121); an investment deduction that affects the tax burden returns in the RJ 272 reconciliation |
| Large | RJ 274 | As medium-sized |
An account of the grant that the grantor asks for is separate from the annual accounts. Whether a small BV needs an accountant for it, you can read at grants and accountant's audit.
Common mistakes
- Recognising a grant on receipt of the advance instead of according to the costs incurred.
- Taking an investment grant to the result in one go.
- Showing an investment deduction as a grant in operating result instead of in taxes.
- Leaving a too-high advance as income while the final determination turns out lower.
- Switching between gross and net presentation between years without a change of policy.
Sources
- RVO: WBSO, the R&D remittance reduction
- RVO: SDE++, Stimulation of Sustainable Energy Production and Climate Transition
- Art. 2:381 DCC: commitments not included in the balance sheet (wetten.overheid.nl)
- Dutch Accounting Standards Board (Raad voor de Jaarverslaggeving): the Guidelines and the compilations (rjnet.nl)
Frequently asked questions
How do I account for the WBSO in the annual accounts?
The WBSO reduces the payroll taxes you have to remit and is therefore an operating grant on wage costs (RJ 274; RJk B17). You recognise it in the year in which the R&D hours were worked, as other operating income or as a deduction from wages. Choose one presentation and keep to it. Hours that do not qualify give no reduction.
When do I recognise a grant that has been awarded?
As soon as it is reasonably certain that you meet the conditions and will receive the grant (RJ 274.107). For a grant for costs you recognise only the part that relates to costs already incurred. An advance you receive above that is shown on the balance sheet as a liability or amount received in advance.
May I deduct an investment grant from the purchase price?
Yes. RJ 274.112 and RJk B17.112 allow two presentations: the grant as an amount received in advance that is released over the useful life, or as a deduction from the carrying amount of the asset. The result per year is the same; only the balance sheet differs.
Is an energy investment deduction a grant?
Not in the sense of the annual accounts. A deduction that reduces corporate income tax is accounted for through the taxes line, at once or spread (RJ 274.117 and 118; RJk B17.115). If you are medium-sized or large, you explain the benefit in the reconciliation of the tax burden.
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