On Prinsjesdag, the Government announced the Job-Related Investment Allowance (BIK).
One day after this article was published, the BIK was included in the 2021 Tax Plan bill. See our article BIK proposal submitted.
In a letter On 28 May 2021, the State Secretary for Finance announced that the bill intended to regulate the BIK had been withdrawn.
The BIK will therefore definitely NOT be introduced.
From 1 October 2020
The scheme will apply to investment obligations which on or after 1 October 2020 have been entered into. However, the bill is still with the Council of State for advice. The exact details of the scheme are therefore not yet known. For the time being, we have to make do with what State Secretary Vijlbrief said in a letter writes to Parliament about the scheme.
New investments
The scheme is aimed at new investments in business assets. The investments must have been paid for in full during the period from 1 January 2021 to 31 December 2022. They must also have been put into use within six months of full payment.
The scheme is intended to provide an incentive for new investment in 2021 and 2022, to combat the economic crisis caused by the coronavirus. After 2022, the budget will be used for a scheme with a similar objective, namely to reduce employers’ costs.
Reduction in payroll tax
The allowance takes the form of a reduction in payroll tax. As a result, companies that employ no (or very few) staff do not benefit (or benefit only to a limited extent) from the reduction.
The Government has explicitly decided that, in addition to the BIK, the small-scale investment allowance (KIA), the energy investment allowance (EIA), Environmental Investment Allowance (MIA) and the discretionary depreciation scheme for environmental investments (vamil) may also be claimed. Naturally, this is only possible if the conditions of those schemes are met.