Invest Smart and Use Investment Deduction

in tax •  2 days ago 

As a self-employed individual (ZZP’er) in the Netherlands 2024, if you purchase more than €2,801 excluding VAT in equipment, with each item costing more than €450 excluding VAT, you can take advantage of the Investment Deduction (KIA, which stand for Kleinschaligheidsinvesteringsaftrek - there's a Scrabble-word for you 😉).

KIA is a Dutch tax deduction for small-scale investments made by businesses, encouraging them to invest in assets. If a business qualifies, it can deduct a percentage of the investment amount from its taxable profit.

laptop, tablet and phone wirth over €450

You will only receive KIA on equipment that you need to depreciate. If your investments this year are just below the minimum threshold of €2,801, it is smart to buy a tablet, phone, or something else worth more than €450 excluding VAT, so that you exceed the €2,801 threshold. The 28% KIA provides the self-employed with an additional tax deduction for income tax purposes. The first and highest bracket of 28% for KIA lies between €2,800 and €69,765, according to zzp-accountants.

If in the past five years you purchased equipment that you now sell, you are also required to report a disinvestment addition at the sales price excluding VAT.

I hope this is useful in some way for your small business. If you'd like more information on this, feel free to get in touch on 📞 +34 (0)6 1393 6399

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