Tips for (starting) entrepreneurs: small scale investments allowance

As an entrepreneur, you are entitled to several benefits. This article outlines an additional allowance that is related to investments.

It is called: the “small scale investments allowance”, in Dutch: “kleinschaligheidsinvesteringsaftrek”.

Basically, you will be allowed to deduct an additional 28% of the invested amount, provided (amongst others) that you have invested more than € 2,600 excluding VAT during the tax year 2023.

So, if you are planning to invest – for instance – in a new computer, think twice:

Most computers cost less than € 2,600 excluding VAT nowadays.

Solution: as mobile phones are becoming more expensive every year, you may consider purchasing a new computer + a new mobile phone in one year, rather than purchasing these items in subsequent years.

In that case, your invested amount will exceed € 2,600 and you will be able to deduct at least: € 2,601 * 28% = € 728 extra from your taxable profits.

Please note that the investments allowance is capped at a maximum of € 17,841 for investments as from € 63,717 up to € 117,991 in 2023.

Disclaimer: Although this publication has been compiled with great care, Joop Dagevos and all other entities, partnerships, persons and practices trading under the name ‘Yodatax Expat Solutions’, cannot accept any liability for the consequences of making use of this issue without their cooperation. The information provided is intended as general information and cannot be regarded as advice.

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