Small-scale Investment Allowance (Kleinschaligheidsinvesteringsaftrek - KIA)

Please note

Passenger cars are largely excluded; commercial vehicles and machinery often are not. Amounts and conditions change annually. More on investing and taxes.

Which investments qualify for the KIA?

However, certain investments are excluded from the KIA. This applies, for example, to land, residential properties, passenger cars not used for professional transport (unless specific exceptions apply, such as a taxi or driving school car), and certain intangible assets. Investments in assets primarily for investment purposes, such as art, also do not qualify. Furthermore, there is a minimum investment threshold per business asset for the KIA; very small purchases therefore fall outside the scheme. It is advisable to check the current list of excluded investments with the Dutch Tax Authorities (Belastingdienst).

• New or used business assets (provided they have not been previously depreciated with KIA)
• Durable assets, necessary for business operations
• No passenger cars for private use or investments

How do you calculate the deduction percentage for the KIA?

The precise percentages and thresholds are set annually by the government and published by the Dutch Tax Authorities (Belastingdienst). It is therefore important to always consult the most recent information. For entrepreneurs with small investments, the KIA can cover a significant portion of the investment costs, while for larger investments, the deduction becomes proportionally smaller, and then completely ceases above a certain amount. Careful planning of your investments can help you optimally benefit from this tax scheme and thus improve your company's liquidity.

Frequently asked questions