Job-related investment credit – BIK

The Dutch government introduced a tax credit for investments in job creation (Dutch acronym: BIK) on 1 January 2021. This tax credit is designed to encourage companies to invest in times of crisis. The tax credit will be available until 31 December 2022.

While the facility came into effect on 1 January 2021, the tax credit applies to investments made between 1 October 2020 and 31 December 2022. To qualify, the last instalment on your investment must have been paid between 1 January 2021 and 31 December 2022, and the equipment you invested in must have been put into operation within six months of the last payment.

To qualify for the tax credit, please make sure that you do not pay the last instalment on an investment you made in 2020 until 2021. You have until 31 December 2022 to pay the last instalment to be eligible for the facility. Read on to find out more about the application process.

More about the job-related investment credit facility – BIK

Subject to certain conditions, self-employed persons, partnerships and companies are eligible for the facility, which allows them to offset a percentage of their investments against their payroll tax liability.

The following tax credit rates will apply:

• Investments ≤ € 5m: 3.9% (was 3%)
• Investments > € 5m: 1.8% (was 2.44%)

Example

If you buy a machine for € 1 million, your investment credit will be 3.9%, which corresponds to an effective gain of € 39,000.

Conditions

1. All applications are subject to a floor of € 1,500 per asset and € 20,000 per application.
2. The last instalment on your investment must have been paid between 1 January 2021 and 31 December 2022, and the equipment you invested in must have been put into operation within six months of the last payment.
3. The facility applies to investments in new assets only.
4. No more than four applications per year will be accepted with a maximum of one per quarter.

Investments made before 1 January 2021

While the facility came into effect on 1 January 2021, it also applies to investments made between 1 October 2020 and the beginning of 2021. If you invested in new equipment after 1 October 2020, please make sure that you do not pay the last instalment until 2021. You will not qualify for the facility if you paid the last instalment on your investment before 1 January 2021.

Additional rules

The job-related investment credit facility is offered in addition to existing tax incentives such as the environmental investment credit (Dutch acronym: MIA), the small projects investment credit (Dutch acronym: KIA), the energy saving investment credit (Dutch acronym: EIA) and the facility for arbitrary depreciation of environmental investments (Dutch acronym: Vamil). These facilities are governed by similar conditions. If your asset does not qualify for one of these facilities, you will not be eligible for the job-related investment credit either.

Offsetting

The facility takes the form of a payroll tax credit. After the Netherlands Enterprise Agency (Rijksdienst voor ondernemend Nederland-RVO) has issued a decision on your tax credit, the credit will be applied to your payroll tax liability. The tax credit can only be applied in the calendar year in which the Netherlands Enterprise Agency issued its decision.

Application process

Applications for the job-related investment credit will be invited from 1 September 2021 onwards. Please remember to submit your application within the set deadline, i.e. within three months of the end of the year in which you paid the last instalment on your investment.

Please contact your Accon International adviser now to find out more about the facility and to start a conversation about investments and available subsidies.

More information

We are happy to offer our input on your investment plans or to answer any questions you may have about the situation in the Netherlands, whether they are COVID-related or not. Please feel free to contact your accon■avm adviser or send an email tot international@acconavm.nl so that we can help you discover what is truly important to your business.