Income tax
Invest more than €2,901 in one year and you may deduct 28% of it from your profit. Below that, nothing — which turns the timing of a purchase into a decision.
The kleinschaligheidsinvesteringsaftrek (KIA), the Dutch small-scale investment deduction, is an extra deduction from your profit for anyone investing in business assets during a financial year. In 2026 an investment total of €2,901 to €71,683 gives you a deduction of 28% of that amount; from €71,684 to €132,746 it is a fixed €20,072, and above that it tapers to zero at €398,236. Below €2,901 you get nothing. A business asset costing less than €450 does not count towards the total, and a number of assets are excluded altogether — among them the passenger car, unless it is intended for professional transport. The deduction is separate from depreciation: you still write the asset down over its life and you also get the KIA.
Enter what you invest in business assets in total this year and roughly what your profit is. You see the deduction under the 2026 table and what it saves in income tax and Zvw contribution.
| Small-scale investment deduction (KIA) | €2,800 |
|---|---|
| Profit after KIA | €42,200 |
| Tax and Zvw without KIA | €7,412 |
| Tax and Zvw with KIA | €6,311 |
| What the KIA saves | €1,101 |
The KIA is calculated on the total you invest in business assets in one financial year, not per purchase. In the first band — €2,901 to €71,683 — the deduction is 28% of that total. Invest €10,000 and you may take another €2,800 off your profit. Above that it becomes a fixed €20,072, and from €132,747 it decreases again to zero at €398,236.
It is a deduction, not a grant: the amount is not paid out to you, it comes off your profit. What it nets you therefore depends on your rate. And it comes on top of depreciation — you still write the asset down over its life and you get the KIA in the year you invest.
This is where most money is left on the table. Below €2,901 in a financial year you get nothing. Buy a laptop and a desk for €2,000 together this year, and a camera and a monitor for €2,000 next year, and you clear the threshold in neither: nothing twice.
Put those same purchases in one financial year and you are at €4,000, which yields €1,120 of deduction. Same money, same equipment, only a different moment of purchase. So anyone sitting close to €2,901 towards the end of the year has one more reason to pull a purchase forward — or to push it into January if this year is out of reach anyway.
Two kinds of exclusion. The first is the amount: an asset costing less than €450 does not count, not even towards the total. A €40 mouse and a €60 keyboard therefore do not add up to something that qualifies.
The second is the nature of the asset. The passenger car is the best known: it is excluded unless intended for professional transport, such as a taxi or a courier vehicle. Also outside the scheme are residential buildings, land, animals, vessels for representative purposes, securities, receivables, goodwill and public-law permits, as well as assets you use abroad or make available to a third party.
An investment is not an expense. Book a €1,200 purchase as a cost and it drops out of your investment total and no longer counts towards the €2,901 threshold — when it should have. Business assets belong on the balance sheet, with a depreciation term underneath.
So track your investments as investments throughout the year, not only at year-end close. Then you can see in November whether you land above or below the threshold, which is exactly the moment you can still do something about it.
Updated October 2, 2026. General explanation of the Dutch rules, not tax advice — for your own situation, decide together with your accountant or the Dutch Tax Administration.
No. A business asset costing less than €450 does not count towards the KIA, not even added together with other small purchases. You can of course still record it as an asset or as a cost in your books.
It depends on the type of vehicle. The exclusion is written literally for passenger cars that are not intended for professional transport — a taxi or a courier car therefore falls outside it and does count. A van is not on the list of excluded business assets. The usual conditions still apply: the asset must cost at least €450 and must not be intended for 70% or more rental or for use abroad. Whether your vehicle counts as a passenger car or a van for tax purposes is a separate question — put that to your accountant before you count on a deduction.
No. It is a deduction from your profit, not a grant that lands in your account. What it nets you depends on the rate at which your profit is taxed, and therefore on your total income that year.
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