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Written by:
Bas Hollenberg


Arbitrary depreciation

Arbitrary depreciation measure approved
The suggested measure for arbitrary depreciation on business assets has been approved by the Cabinet.  Businesses can immediately write off up to 50% of new assets and deduct the tax from 1 July to the end of this year. According to the Central Bureau of Statistics business investment in assets has contracted by almost 8% in the first quarter of 2013. The Central Planning Bureau expects a contraction of 10% for the 2013 year. ‘Such a contraction is worrying’, said minister Kamp. ‘This measure ensures that companies are given more opportunity to invest in the economy. This measure provides the capacity to invest 400 million euros in the economy, which will create income and jobs that we could use in these tough economic times’.  

State Secretary of Finance Weekers: ‘The scheme for arbitrary depreciation allows companies to defer their 2013 tax obligations for a few years. This provides them with the extra liquidity and incentive to invest now, which benefits not only the businesses themselves, but the Dutch economy as a whole’.

The scheme for temporary arbitrary depreciation runs from 1 July 2013 until the end of this year. Capital expenditures which are made in the 2nd half of the year can be amortized up to 50%. This applies both to companies and other businesses which are liable for income tax only. The condition is that the investment, for example a machine, must be used before 1 January 2016. If it is not, then the accelerated depreciation will be reversed.   

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