Fiscal reserves

What are fiscal reserves?

Fiscal reserves are amounts of money you set aside for later. You can deduct the reserves from your profits and you then pay less tax. The main fiscal reserves are reinvestment reserve, equalisation reserve and retirement reserve.

Reinvestment reserve (HIR) in case of the sale, loss, or damage of a company asset

Have you sold a company asset and made a profit off it? For example, company cars, machinery, laptops, or business premises? Or have you received compensation for a lost or damaged company asset? Then you can put the profit in the reinvestment reserve (HIR, herinvesteringsreserve in Dutch). You do not need to pay taxes over that profit at that moment. The most important condition is that you have plans to buy another company asset with that money.

Reinvestment reserve for second company

Do you need to end part of your business activities due to government rules? For example, due to a beëindigingsregeling(termination settlement, in Dutch). As of 1 January 2024, you are allowed to invest the reinvestment reserve (in Dutch) in another (second) company.

Please note: If you do not reinvest the money you set aside, you pay taxes over the reserved profit later.

Equalisation reserve for high periodic expenses

Do you have high expenses for your company once in a few years? For example, for maintenance of your premises. Then you can use an equalisation reserve (in Dutch). You put aside a certain amount of your fiscal profit, without actually already having spent the money. This way, you are prepared for the costs you are going to have in the future. In the year that you actually make the costs, the equalisation reserve is available for those costs. This ensures that the costs are divided over multiple years for the Netherlands Tax Administration (Belastingdienst). And you avoid having a very large cost item in one single year.

Please note: You cannot use the equalisation reserve for annual costs or to buy a company asset.

Fiscal retirement reserve (FOR) for entrepreneurs (expired)

Previously, if you were an entrepreneur for income tax purposes, you were allowed to build up a fiscal retirement reserve (FOR) (in Dutch). A reservation of part of your profit for your pension. This scheme expired on 1 January 2023. The built up FOR retirement reserve remains in place.