Business owners in the Netherlands who invest in business assets, are eligible to claim the small projects investment credit (kleinschaligheidsinvesteringsaftrek, KIA, in Dutch). That means they are permitted to deduct part of this investment from their profits. How much, depends on the amount invested.
When do you qualify?
- Your company is registered in the Netherlands and you are liable to pay income tax or corporate income tax in the Netherlands;
- you invest in business assets (Investeren in bedrijfsmiddelen,in Dutch) within the amount set annually by the Dutch Tax and Customs Administration (in Dutch); and
- your investment in business assets must be a certain amount. You can consult the current amounts at the Dutch Tax and Customs Administration's website (in Dutch).
Disinvestment surcharge
If you sell or give away the business assets within 5 years after your investment and the total value exceeds €2,600, you must repay a proportion of the allowance via the disinvestment surcharge (Desinvesteringsbijtelling, in Dutch).
How to apply?
You can deduct KIA when completing your income tax return. For further information about this scheme, please contact the Dutch Tax and Customs Administration.