The Small-scale Investment Allowance (KIA)
Published on
Last updated on
The Small-scale Investment Allowance (KIA) is an additional tax deduction for entrepreneurs who invest in business assets during a financial year. The deduction depends on the total amount of qualifying investments in that year.
An individual business asset must cost at least €450 to qualify. If you can reclaim VAT, assess this threshold excluding VAT. If you cannot reclaim VAT, use the amount including VAT.
KIA amounts from 2023 through 2026
| Year | KIA from | 28% up to | Maximum KIA | Fixed maximum for total investment | Reduction up to |
|---|---|---|---|---|---|
| 2023 | €2,601 | €63,716 | €17,841 | €63,717 – €117,991 | €353,973 |
| 2024 | €2,801 | €69,765 | €19,535 | €69,766 – €129,194 | €387,580 |
| 2025 | €2,901 | €70,602 | €19,769 | €70,603 – €130,744 | €392,230 |
| 2026 | €2,901 | €71,683 | €20,072 | €71,684 – €132,746 | €398,236 |
Up to the amount in the third column, the KIA equals 28% of the total investment. The next band uses the fixed maximum. After that, the deduction is reduced by 7.56% of the amount above the end of that band. Above the amount in the final column, the KIA is 0%.
When can planning ahead be useful?
Add up your qualifying investments near the end of the year. If you are just below the threshold and a necessary business investment was already planned, making it in the same year may be advantageous. If you do not expect to reach the threshold, postponing it until the next year may be more beneficial. The business need should always come first.
Important points
- Regular passenger cars not intended for professional transport generally do not qualify for KIA.
- Business assets intended for rental are excluded.
- For a partnership, the calculation uses the partnership’s total investment.
- Special rules may apply to a non-calendar financial year.
Official Dutch Tax Administration tables: 2023, 2024, 2025 and 2026.