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The Investment Allowances Part 1

Deduction of operating assets

The investment deduction reduces your taxable profit, so that you as an entrepreneur pay less tax. When you invest in company resources, you can under certain conditions

take advantage of this tax benefit. How does this work?

The investment deduction concerns several tax deductions. These are the:

• Small-scale investment allowance for the environmental investment allowance
• VAMIL energy investment deduction in general, for these deductible items you must be taxable for income tax or corporate income tax.

In addition, you cannot combine all deductible items and you are not entitled to an investment deduction for some investments. Furthermore, specific conditions and amounts apply to each deductible item.

Pay attention

The conditions for the investment deduction are complex. Learn more about this and get advice from an accountant or accountant. This prevents you from having to pay back the deduction afterwards. Small-scale investment allowances The small-scale investment allowance (KIA) is a deduction that is used for business assets in general. This concern, for example, computers, office furniture or tools.

A minimum investment amount per asset applies to the KIA. If the investment amount is too low, the business asset is not eligible for this deduction. The minimum investment amount is € 450 per business asset.

The amount of the deduction also depends on the total investment of your company in the relevant financial year. On the website of the Tax and Customs Authorities contains all the conditions and tables for each financial year with which you can determine the amount of the deduction.

Pay attention

If your company is part of a partnership, then you need to add up all individual investments. The amount of the deduction is then based on the total investment of the partnership and not on the investment of each company separately.