How to optimally invest in your Dutch business?
When you start your business in the Netherlands, you have to invest in your company. Perhaps a risky step, because you are going to spend money without anything coming in at all yet. But these investments are often profitable in the long run. Even if your company has already existed for a while, you occasionally have to invest in your Dutch business. It is important to plan these investments well. In this article, we help you with this so you can get the most tax benefits from your investments.
Help with your Dutch tax return!
Would you like advice on how to optimally invest in your Dutch business? Or do you want help with your tax return in the Netherlands? We are happy to help you with the tax. Fill in the contact form or call us on +31 20-2170120 to discuss the possibilities.
Make use of the investment deduction
As an entrepreneur in the Netherlands, you may deduct the depreciation costs (afschrijvingskosten) of your investments from your profit. This reduces your taxable income and, therefore, also the tax you have to pay. In addition, in many cases, you may apply the investment deduction, which reduces your profit even more. It is important to know that there is no combination possible between the environmental and energy investment deduction. The investment deduction consists of:
Good investment plan for optimal tax benefits
It is important to make a good investment plan for your company. Good planning could save you some money. But why? Well, we will tell you why!
The first reason has to do with the tax brackets. Is your profit in 2022 more than €69,399? Then you end up in the second bracket and pay the high tax rate (49.5%). Do you expect to achieve a lower profit next year, which would place you in the first tax bracket (37.07%)? Then it is wise to make the investment you have planned for next year this year. This gives you a greater tax advantage.
Get the most out of the KIA
In addition, it is wise to take a good look at the small-scale investment deduction. For this deduction, you must invest at least € 2,400 per year. If you invest relatively little, it could be wise to make the small investments in one year, so that you can use this deduction.
But are you investing a lot? Then it is wise to spread these investments over several years. Investments up to €59,940 have a relatively higher deduction than an investment amount that comes above. Via this link, you’ll find the table of the small-scale investment deduction 2022.
Help with your tax return in the Netherlands
Would you like some help with your tax return, or do you have questions about the investment deduction? We are happy to help you! Please, contact us using the details mentioned below.