KIA: Small Scale Investment Deduction for entrepreneurs
The KIA is an attractive tax deduction for entrepreneurs investing in business assets. Save up to 28% on your investments through your tax return.
What is the KIA?
The Small Scale Investment Deduction (KIA) allows entrepreneurs to deduct a percentage of their business asset investments from profits. This lowers taxable profit and thus the tax owed. The KIA applies to total annual investments between €2,901 and €398,236, with deduction percentages up to 28%.
Who is the KIA for?
- Self-employed entrepreneurs (ZZP)
- SMEs investing in business assets
- Entrepreneurs in income tax
- Companies (BVs) that qualify
Conditions
- Total annual investment between €2,901 and €398,236
- Minimum €450 per asset
- Excluded: passenger cars, homes, land, securities
- Not for goodwill, licenses or animals
- Asset must be used for the business
How much KIA deduction do you get?
- Investment €2,901-€69,764: 28% deduction
- Investment €69,764-€104,891: fixed amount €19,534
- Investment €104,891-€398,236: declining percentage
- Above €398,236: no KIA
- Percentage calculated on total investment amount
How does the KIA work?
Make investments
Purchase business assets of at least €450 each.
Track investments
Keep accurate records of all investments during the calendar year.
Calculate KIA
We calculate the optimal deduction based on your total investments.
Process in tax return
The KIA is processed in your income or corporate tax return.
How does Zandwijken help with the KIA?
We automatically calculate your optimal KIA when preparing your tax return. We also advise on the optimal timing of investments to maximize your deduction.
Frequently asked questions about the KIA
Maximize your KIA?
Let us calculate your investment deduction for maximum tax benefit.