Optimising the small-scale investment allowance

If you made investments in the Netherlands in 2019, you can optimise the small-scale investment allowance (Dutch acronym: KIA). The allowance runs up for investments in aggregate between € 2,301 and € 57,321. Additional investments letting the aggregate of investments to rise between € 57,321 and € 106,150 do not qualify for further allowance. If you invested more than € 106,150 in 2019, the allowance will be reduced or declared inapplicable altogether. The table below shows you how the allowance is applied.

If you invested € 100,000 in aggregate in 2019, the allowance will be € 16,051. If you plan to make another investment of € 25,000 in December 2019, the allowance will drop to € 14,625. This will reduce your tax allowance by € 1,426.

You may want to consider postponing the investment until January 2020. Interested in finding out whether there is scope for optimising the allowance in 2019? Please contact your Accon International tax adviser by sending an email to international@acconavm.nl.