2016 Investment allowance particulars

The investment allowance scheme is aimed at encouraging investments being made by business owners. A distinction can be made between three types of investment allowance, to wit the small-scale investment allowance (Dutch acronym: “KIA”). The energy investment allowance (“EIA”) and the environmental investment allowance (Dutch acronym: “MIA”). An overview of the 2016 amounts follows.

Small-scale investment allowance (“KIA”)
The minimum amount for qualifying for KIA in connection with investments in operating assets has remained unchanged from 2015, at € 2,300, and this year is capped at € 311,242 (2015: € 309,693). A € 450 minimum investment per operating asset applies whereas the maximum KIA amount to be collected has been capped at € 15,687, which corresponds with capital expenditure in the € 55,754 to € 103,748 range. The KIA scheme is not available for investments projects involving residential properties, moveable or immoveable leases or lets, passenger vehicles, goodwill, concessions or (other) licences or permits.

Energy investment allowance (“EIA”)
Although the EIA rates for investments in energy efficiency boosting operating assets have not changed compared with 2015, the list of operating assets that qualify for application of the scheme has. The EIA rate amounts to 58.0% (2015: 41.5%) per investment, to a maximum each of € 120m (2015: € 119m). A € 2,500 minimum investment per operating asset applies (unchanged from 2015).

Environmental investment allowance (“MIA”)
The list of operating assets that qualify for application of the MIA scheme has changed compared with 2015 whereas the MIA rates have remained the same, as follows:

• 36% for “category I” investments,
• 27% for “category II” investments,
• 13.5% for “category III” investments.

A € 2,500 minimum investment per operating asset applies. The maximum amount to qualify for a MIA allowance amounts to € 25 million.

“VAMIL” scheme
As a supplementary scheme to the “MIA” arrangement, the “VAMIL” (random depreciation of environmental investments) scheme facilitates accelerated depreciation in connection with environmental investments for up to 75% of the acquisition cost (the residual 25% having to be depreciated in the customary manner).

The RVO (Netherlands Enterprise Agency) web site features an overview of the kinds of operating asset to which the EIA and MIA/VAMIL schemes applies.