The Dutch WBSO program provides a fiscal facility for companies and self-employed persons who perform R&D work. In this context, R&D means technical/scientific research, the development of technologically new physical products or physical production processes (or parts thereof) and the development of technologically new software (or parts thereof). A contribution of up to 42% is paid towards the wage costs of all employees directly involved in R&D. The contribution is in the form of a reduction of payroll tax and social security contributions, and an increase in the tax deductions available to self-employed persons. Applications must be received one month before the start of the period for which these facilities are required. Most Dutch companies that perform R&D activities are using the WBSO program on a continuous basis (year-round), as it provides a very significant reduction of the labor costs.