Skip to main content

What types of investment deductions are there?

When you invest in business assets, you may qualify for investment deductions. These are tax deductions that reduce your income or corporate tax liability.

D
Written by Danica van Zyl

Small-Scale Investment Allowance (KIA)

You can use the KIA if you invest a certain minimum amount in business assets. If you spend at least that amount, you may deduct up to 28% of the investment. Above a certain threshold, the percentage decreases. The minimum investment amount changes annually.

Common business assets include: a computer, desk, machine, camera, etc. A car only qualifies if it is a commercial (van-style) vehicle. Regular passenger cars do not qualify.

If you are eligible for the KIA, we apply it in your tax return.

Energy Investment Allowance (EIA)

The EIA encourages investments in energy-saving or sustainable assets. You qualify if:

  • The investment is at least €2,500 per asset

  • The asset is new

  • It is listed on the Energy List

  • You have not already received environmental investment deduction

You cannot combine EIA and MIA, but both can be combined with KIA.

To use the scheme, you must report the investment to the RVO within 3 months. They determine the amount.

Environmental Investment Allowance (MIA/VAMIL)

The MIA applies to environmentally friendly investments.

With MIA, you can deduct up to 45% of the investment from your profit, depending on environmental impact and asset type.

With VAMIL, you can depreciate up to 75% of the investment at any time, reducing profit in that year.

Conditions:

  • The asset is on the environmental list

  • It is new

  • Investment relates to acquisition or production costs

  • Minimum investment is €2,500 per asset

You must report it to the RVO within 3 months.

Did this answer your question?