Tax breaks for new businesses in the Netherlands
Do you market new innovative products based on your own R&D? Then you may be eligible for the Innovation Box. The Innovation Box reduces corporate tax for profits from innovative activities. As of 2018, an effective tax rate of 7% applies instead of the maximum rate of 25%. The tax authorities implement the Innovation Box.
If you want to use the Innovation Box, you will need to submit an R&D statement and in some cases also a patent. This scheme is only of interest to companies subject to corporate tax, such as private limited companies. Contact ICS for more information about the potential benefits of the Innovation Box.
The small-scale investment allowance (Kleinschaligheidsinvesteringsaftrek or KIA)
Do you invest in business assets? Then you can deduct an amount from the profit with an investment deduction. You are then eligible for a small-scale investment allowance (KIA). The amount of KIA depends on the amount invested.
Who is eligible?
You may be eligible if your company is established in the Netherlands and you are liable to pay income tax or corporate income tax;
You invest in company resources for your company.
In 1 year you invest a certain amount in new or 2nd-hand business assets. In the table of the Tax Authorities, you will find the percentages for the investment deduction.
Do you sell or donate your assets within 5 years of your investment? And is the total value more than € 2,300? If so, you must repay part of the deduction via the divestment addition.
How can you apply?
You can apply the small-scale investment deduction to your income tax or corporate tax return.
Energy investment allowance (EIA)
If you invest in certain energy-saving assets and sustainable energy, you may deduct part of the investment costs from your taxable profit via the EIA scheme. This means you pay less income tax or corporate tax. Contact the tax specialists at ICS to find out if you are eligible to do this.
It is sometimes possible to benefit when you make investments to limit damage to the environment. Investments that are on the Environmental List provide an additional deductible item on the Environmental Investment Allowance (MIA) or you can write off accelerated (Random depreciation of environmental investments (Vamil)). This reduces your income tax or corporate tax. The MIA / Vamil scheme applies to, among other things, environmental measures in industry, agriculture and transport.