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Ecological investment in business in 2022 became even more profitable

04.02.2022

If you invest in green business assets and technologies, you may qualify for the MIA green investment credit. In 2022, it has grown exponentially. Below we will analyze such investment deductions as MIA, KIA, EIA and Vamil.

MIA (Environmental Investment Allowance) - eco-investment deduction. The prefix “eco-” refers to technologies from the ecolist (Milieulijst 2022). It includes state-of-the-art technologies, from biomass plastics and a 3D printer for greener production, to electric vans and solar panels free of cadmium, fluorine and lead. Please note that personal electric vehicles, such as Tesla, for example, are no longer on the list. An exception is made only for electric vehicles with solar panels.

To receive the deduction, you must invest at least 2.500 euros. The deduction cannot be received for old and long-used funds, for example, for a used electric car. The full list of Milieulijst 2022 can be viewed here.

The deductions in 2022 are as follows:

  • Category I (from Milieulijst 2022) - 45% (was 36%);
  • Category II - 36% (previously 27%);
  • III category - 27% (previously 13,5%).

The MIA deduction can be claimed along with the KIA small investment deduction.

KIA (kleinschaligheidsinvesteringsaftrek) – small investment deduction. This includes, for example, buying new computers and desks for your business. Please note that in order to receive a deduction, the investment amount must be at least 2.401 euros for one calendar year. If the purchase amount is from 2.401 to 59.939 euros, then the deduction amount will be 28% of the check.

If MIA and KIA are combined, then EIA (energy investment deduction) and MIA are not. That is, if you want to receive an MIA deduction, then you can no longer apply for an EIA.

EIA - energy investment deduction. It can be obtained for the purchase and installation of an energy efficient fan, heat pump, heat pump boiler and other devices that are included in the energy list (Energielijst 2022). The list can be viewed here. For 2021 and 2022, the deduction is 45,5% (was 45%).

Vamil

Another nice tax bonus is a tool called Vamil. It implies the write-off of a large part of eco-investments (up to a maximum of 75% of the investment amount) at any time. This will reduce your taxable profit/income for the year and therefore pay less tax.

If you have been planning to invest in a business for a long time and are thinking about making it not only useful, but also profitable, then 2022 is ideal for such investments. Moreover, the authorities regularly raise the energy efficiency standards of buildings. For example, class C energy efficiency will become mandatory for commercial premises from 2023. More here.

Contact us if you need help with calculations and a list of what you can and should invest in to save on taxes.

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