Tax incentives for environmental investments have been greatly reduced

The Netherlands Enterprise Agency (Rijksdienst voor Ondernemend - RVO) presented new list of assets, investments in which give the right to deduct environmental investments (Milieu-investeringsaftrek - MIA) and depreciation of such investments (Willekeurige afschrijving milieu-investeringen - Vamil). It should be noted that the new list is much shorter than the previous one: 108 old positions were removed from it and only 6 new ones were added. In addition, the conditions for receiving tax benefits have changed for 112 items on the list.

Of course, entrepreneurs who invest this way will feel the difference. Scheme MIA allows you to write off up to 45% of the investment amount from the tax base, and the scheme Vamil makes it possible to write off 75% of the amount of investment expenses at the most convenient moment for the entrepreneur. According to RVO calculations, using both schemes allows an entrepreneur to return up to 14% of the amount spent on environmental investments.

The reasons for the reduction in the list of environmental investments lie in changes in pan-European rules for the provision of state economic assistance and subsidies. Respectively:

• State support for the replacement of fossil raw materials with biological ones is prohibited, unless the biological raw materials are waste or by-products of other industries.
• The production of hydrogen, which is itself a clean fuel, can only be sustained if only green electricity is used to extract it. It is almost impossible to verify how the electricity is produced, which is why hydrogen has been removed from the list of green investments.
• So-called “low emission floors” in cow housing have been removed from the list as they have not lived up to expectations. Traditional slatted floors produce approximately the same emissions. For pig and poultry farming, such floors have been found effective and remain on the list.

New green investments to benefit from the MIA and Vamil schemes include:

• Mechanical means of pest control in agricultural plants,
• Equipment designed to reduce methane and ammonia emissions when applying manure to the soil.
• Tap systems for bottling water and soft drinks, allowing to reduce the volume of waste from disposable packaging.

Dutch legislation allows you to reduce your tax burden in legal ways, you just need to know them. Order an accounting service in Nalog.nl, this will allow you to take advantage of all the opportunities to reduce taxes.