The percentages of the environmental investment allowance (MIA) will go up in 2022. It may therefore be interesting to postpone these investments until after the upcoming turn of the year. Or not .... after all?
MIA
The MIA is a deduction from profits on which income or corporate tax has to be paid. This deduction may be claimed by entrepreneurs investing in business assets included in the environment list.
The MIA in 2021 amounts to 13.5%, 27% or 36% of the investment amount. The amount of the deduction depends on the extent to which the asset is still innovative. For some assets, the MIA can only be claimed over part of the investment amount.
For 2022, these deduction rates are: 27%, 36% and 45% (noting that this is part of the bills under the 2022 tax plans, which proposals have not yet been accepted by Parliament).
That means a significantly higher deduction in 2022. But ....
Environmental List
The environment list includes business assets that are so innovative that entrepreneurs need a push to invest in them. The environment list is redefined every year. You can find the environment list for 2021 on the website of the RFO: environment list 2021.
The environment list for 2022 has not yet been announced. However, it is certain that a number of assets will be removed from the list. Entrepreneurs who want to invest in these assets would be wise not to postpone that investment until 2022.
Decisive for when to invest is when the final commitment is made.