Small-Scale Investment Deduction (KIA) 2023
Entrepreneurs in the Netherlands may qualify for the small-scale investment deduction (KIA). This is a tax scheme that allows you to deduct part of the investment costs in business assets from your profit.
Conditions
To qualify for the KIA, you must meet the following conditions:
- You are an entrepreneur in the Netherlands.
- You invest in business assets for your company.
- The investment value of the business assets is between € 2,601 and € 353,973.
- The investment value of the business assets is excluding VAT.
Calculation
The amount of the KIA depends on the investment value of the business assets. The percentages for the KIA in 2023 are as follows:
| Investment | Small-Scale Investment Deduction |
|---|---|
| no more than € 2,600 | 0% |
| € 2,601 up to € 63,716 | 28% of the investment amount |
| € 63,717 up to € 117,991 | € 17,841 |
| € 117,992 up to € 353,973 | € 17,841 reduced by 7.56% of the part of the investment amount above € 117,991 |
| more than € 353,973 | 0% |
Example
Suppose you invest in LED lighting for your company. The investment value of the LED lighting is € 15,000. The KIA for this investment is then 28%, or € 4,200.
Deduction
The KIA is deducted from your taxable profit. This means you pay less tax on your profit.
How do I apply for KIA?
You can apply the KIA when filing your income tax or corporate tax return.
Click here for more information about KIA from the Dutch Tax Authorities.
