Investment deduction
KIA, EIA, MIA and VAMIL in short
Company assets, that you as an entrepreneur invest in, are sometimes partially deductible from the profit. This fiscal advantage has a number of conditions, but if you meet these the advantages can be significant. The investment deduction consists of three parts: the small-scale investment deduction (KIA), the energy investment deduction (EIA) and the environment investment deduction (MIA)
KIA (small-scale investment deduction)
What?
Fiscal compensation for investments for small and medium sized enterprises
How?
To be entitled for KIA you will need to invest between 2.401 and €328.721 in company assets.
How much?
In 2021 you are entitled to a deduction of 28% of the amount of investment with an investment between €2.401 up to €59.170 €109.574
With an investment from €59.170 up to €109.574 you can deduct an amount of €16.569 and anything above this amount (up to the aforementioned amount of €328.721) you can deduct €16.568, minus 7,56% of the investment amount above €109.574
Pay attention: the deductible percentages/amount can differ depending on the year. Check the most actual information here*.
EIA (energy investment deduction)
What?
The EIA is a compensation that you could be entitled to when you invest in energy efficient technology or renewable energy.
How?
To be entitled to the EIA, you have to invest in efficient technology or renewable energy. Check whether the intended company assets are on the Energy list*. Is this the case? Then you should register the investment prior to purchase on mijn.rvo.nl.
How Much?
The EIA is 45,5% in 2021. The minimal investment amount is €2.500 per company asset. The total maximal investment amount is €126.000.000.
Pay attention: investments can be simultaneously eligible for the energy investment deduction and the small-scale investment deduction. However a combination of the energy investment deduction and the environment investment deduction is not possible.
UPDATE 2024:
The EIA will be extended until 2029 as of 2024. The deduction percentage in this period is lower than before: it will drop to 40% in 2024.
MIA
What?
The MIA is a compensation for investments in environmentally friendly company assets or technologies.
How?
An application for the MIA can be arranged by checking whether the investment that you want to purchase is on the environment list and if so, by registering the investment with the RVO prior to the purchase of the company asset. Only then can this be included in your tax assessment.
How much?
The environmental investment deduction depends on the category of the investment. The deductible percentage is indicated with a letter in the environment list for the company asset code.
When the investment belongs to category I, you can deduct 36% of the purchase value. For category II a percentage of 27% applies and last for the investment category III you can 13,5%.
Pay attention: the minimum investment amount is €2.500 per company asset. In total you can not have more than €25 million eligible investments.
Investments can be simultaneously eligible for the environment investment deduction and the small-scale investment deduction. The MIA regulation is often combined with the VAMIL. (see below)
Vamil
Are you making use of the MIA? Then the VAMIL-regulation concerning environmental investment might also be interesting for you.
What?
Vamil is a random deduction for environmental investments. This is a regulation with which you are fiscally compensated for investments in environmentally friendly company assets.
How?
You pay less taxes by deducting a random percentage in a random year for the expenses for purchasing or adjusting environmentally friendly company assets that are on the environment list*. Through the VAMIL you can choose to write off an asset that is written off over ten years, in one year. You register your investment within three months after purchase with the RVO and include the VAMIL in your tax assessment.
How much?
The deductible amount is determined by the amount of the depreciation. The deductible amount increases by not deducting it staggered over the deduction period, but to deduct a larger amount once with the tax assessment. Pay attention: you do not pay less taxes with the VAMIL, buy you do have more freedom of choice concerning when you want to pay what percentage in taxes over the purchase.
Would you like to know more about the investment deduction?
For further information on investment deductions, you may want to check the Dutch governmental website with information for entrepreneurs (in English): here you can read about the small-scale investment deduction (KIA), the energy investment deduction (EIA) and the environment investment deduction (MIA)
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