16 Mar Investment facilities for 2021
Investment facilities for 2021
16 March, 2021
Just as in previous years, it will be possible to utilise investment facilities like the energy-saving investment credit (EIA), the environmental investment credit (MIA) and the arbitrary depreciation of environmental investments (Vamil) in 2021. To encourage investment during the coronavirus pandemic, the government has also introduced the job-related investment discount (BIK) for 2021 and 2022. An overview follows below of the most important changes in the schemes above with effect from 1 January 2021.
The energy-saving investment credit (EIA)
The object of the EIA is to encourage energy-saving investments. The EIA for 2021 is 45.5%, which means that a company can deduct 45.5% of the investment amount from its taxable profit, on top of the usual depreciation, if the business asset purchased is specified in the Energy List. The Energy List for 2021 has now been published. A minimum investment amount of € 2,500 applies for the EIA.
In a change to the EIA scheme, investments will be assessed on the basis of the payback time applicable and not the energy savings per euro invested with effect from 2021. For example, it is now only possible to gain the EIA benefit for bulbs that have a longer than average service life. The conditions to be met by a large number of cooling systems have been extended or amended too.
The environmental investment credit (MIA) and the arbitrary depreciation of environmental investments (Vamil)
The object of the MIA is to encourage environmentally-friendly investments. A company can deduct part of the investment amount (up to 36%, depending on the type of business asset) from its taxable profit, on top of the usual depreciation, if the business asset is specified in the Environment List. The Environment List for 2021 has now been published.
The following changes amongst others have been made to this scheme with effect from 2021:
- Companies are only able to declare a maximum of 10 electric cars per year for the MIA. This limit does not apply for various other electric vehicles;
- Lead-free battery packs for existing (electric) vehicles are no longer eligible for the MIA.
The Vamil encourages investments in environmentally-friendly business assets by making it possible for companies to decide when to write off a business asset. If a business asset falls under the Vamil scheme, 75% of the investment amount can be depreciated in one go. Companies may find that this benefits them in terms of liquidity and interest.
A minimum investment amount of € 2,500 applies for both the MIA and the Vamil.
To be eligible for the EIA, MIA or Vamil, an investment must be declared to the Netherlands Enterprise Agency (Rijksdienst voor Ondernemend Nederland (RVO)) within three months of the date on which the investment obligation is entered into.
The job-related investment discount (BIK)
The BIK was introduced in 2021 and can be applied for in addition to the EIA, MIA and Vamil. However, the BIK is a temporary discount, which the government has introduced for 2021 and 2022. The object is to encourage companies to continue to invest during the coronavirus pandemic.
For investments up to € 5,000,000 per calendar year, companies receive a discount of 3.9% of the investment amount, which they can deduct from their remittance of payroll taxes and social security contributions. If the investment amount exceeds € 5,000,000, the discount is 1.8% above this threshold. All applications are subject to a minimum amount of € 1,500 for each business asset and € 20,000 per application. For more information about the job-related investment discount, see our previous news report.
If you have any questions about the investment facilities mentioned above, don’t hesitate to contact us. We are always happy to help.