Investing is one of the best ways to lower your profits, provided you have the money, of course.
Then you will quickly end up with 3 types of investment deduction:
- KIA, small-scale investment deduction: applies to all forms of business. This concerns investments of between € 2.401 and € 323.544. The tax authorities use a table for this. See: Small-scale investment deduction 2023 (belastingdienst.nl)
- MIA, environmental investment deduction: only applies to entrepreneurs (zzp/ sole proprietorship/ general partnership). Only new business assets are eligible. In addition, it must concern environmental investments. To find out which business assets qualify for the MIA, you can visit the Environmental list.
- EIA, energy investment deduction: here also only applies to entrepreneurs (zzp/ sole proprietorship/ general partnership). Only new business assets are eligible. In addition, it must concern energy investments. For the EIA you can use the Energy list .
With the MIA and EIA, the percentages may differ per year. In addition, a threshold and ceiling amount also apply. Before you apply the MIA or EIA, you will first have to make the investment report to RVO.nl. This notification must take place within 3 months after entering into the investment obligation.
If a business asset qualifies for both the MIA and the EIA, you will have to choose which of the two you want to apply. It is not allowed to use both.
Do you have any further questions about your situation? Please feel free to contact us via the contact form.