The environmental Investment Deduction (MIA) and the arbitrary depreciation of environmental investments (VAMIL) provide tax benefit for entrepreneurs who invest in environmentally friendly techniques. MIA offers, on top of the regular depreciation, an additional deduction of up to 36% of investment costs decreasing fiscal profits. Resulting in a net benefit of up to 9% of the investment for entrepreneurs who are VpB-liable (Dutch corporate income tax). Vamil gives entrepreneurs the opportunity to amortise 75% of the investment costs at a self-determined moment in time. By writing off investments in the year in which they are incurred, the payment of VpB is postponed to the future. Hence, Vamil achieves a liquidity and interest benefit.
Which investments are eligible?
Investments in environmentally friendly equipment benefit from MIA and Vamil as soon as assets are listed on the Environmental List. In addition to defined environmentally friendly techniques, generic assets are eligible. For these investments, only a directive is applicable for performance delivered. This gives entrepreneurs more freedom of choice in investment behaviour. Finally, the placement of proprietary technology on the environmental list is possible. MIA and Vamil reduce the investment threshold for potential customers, resulting in a more competitive product.
Investments are eligible for MIA and Vamil, as long as:
- The entrepreneur is a taxable person in The Neteherlands, Aruba, Curaçao, Sint Maarten or one of the BES-islands (Dutch (corporate) Income Tax);
- The application shall be submitted within 3 months of signing a contract;
- The investment relates to equipment not previously used;
- The amount of the investment exceeds €2,500.
In addition to the cost of the asset, the MIA and Vamil production costs of the environmentally friendly technique are eligible for tax deduction. Think of your companies own wage and material costs for production and installation of the asset. Environmental consultancy costs are also part of the costs of the products and thereby eligible for tax deduction.
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For clearly defined investments
Each year a publication is made of assets that have a significant environmental merit and are eligible for MIA and Vamil. The Environmental List defines approximately 270 assets classified in different categories. Depending on the category, it’s possible to qualify for solely MIA or Vamil, or for both schemes. The amount of tax deduction for MIA depends on the category to which the investment, varying between 13.5% to 35%.
For generic assets
The environmental list provides space for generic assets. Under certain conditions it’s possible to request investments in environmentally friendly techniques under a generic code. For this group of techniques, the performance they provide is leading. A description of generic assets and the additional requirements is included in the Environmental List.
Own products on the Environmental List
It’s possible to apply self developed environmentally friendly technology for the subsidies. Entrepreneurs have to submit a proposal to change or add a description on the Environmental List. The adaptation will then appear on the next Environmental List. Henceforth, MIA and Vamil can contribute to simplifying the market introduction of proprietary technology.
Ugoo assists you in the effective usage of MIA and Vamil in your company. For more information, please contact one of our consultants.