2018 investment allowance
The Dutch investment allowance scheme is aimed at boosting capital expenditure by business owners. Its three components are as follows:
- the small-scale investment allowance scheme (Dutch acronym: “KIA”),
- the energy investment allowance scheme (Dutch acronym: “EIA”),
- the environmental investment allowance scheme (Dutch acronym: “MIA”
Small-scale investment allowance or KIA scheme
The KIA scheme is available for capital expenditure on condition that the aggregate investment for 2017 has come in the € 2,300 to € 314,673 range. A minimum investment of € 450 applies per operating asset. The maximum KIA allowance has been set at € 15,863, which amount will be reached in the event of aggregate capital expenditure having reached the € 56,642 to € 104,891 range. The KIA allowance for capital expenditure over and above € 104,891 will decline by 7.56% of the excess, and will cease to be available as soon as aggregate capital expenditure has topped € 314,673.
Energy investment allowance or EIA scheme
The EIA rate for investments in energy saving operating assets has been fixed at 54.5% of the investment amount for 2018. The list of operating assets that qualify for admission to the EIA scheme has been revised. The aggregate amount qualifying for investment allowance has been capped at € 121 million. A minimum investment of € 2,500 per operating asset applies. Reference is made to the web site of RVO (dutch), the Netherlands Enterprise Agency, for an overview of EIA-qualifying operating assets.
Environmental investment allowance or MIA scheme
The MIA rates for capital expenditure of an environmentally friendly nature have not changed although the list of operating assets that qualify for admission to the MIA scheme has. The MIA rates are as follows:
- category I : 36.0%
- category II : 27.0%
- category III : 13.5%.
A minimum investment of € 2,500 applies per operating asset. The MIA allowance is available for capital expenditure to an aggregate maximum of € 25,000,000.
Arbitrary depreciation of environmental investment or VAMIL scheme
The VAMIL scheme, which is available for environmental investments, operates in tandem with the MIA scheme by allowing premature depreciation in respect of environmental investments for up to 75% of the acquisition cost of the assets in question (depreciation of the residual 25% having to be effected in the customary manner).
Reference is made to the web site of RVO (dutch), the Netherlands Enterprise Agency, for an overview of MIA-cum-VAMIL qualifying operating assets.
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Dutch version: Investeringsaftrek 2018