MIA and Vamil

With the Environmental Investment Allowance (MIA), an entrepreneur can benefit from an investment deduction that can amount to 45% of the investment amount. The minimum investment amount needs to be €2,500. The MIA is an addition to your regular investment deduction for small-scale investments (KIA). You can increase the base for the MIA with advisory costs and costs related to putting the assets into use. A requirement for applying the MIA is that you invest in assets that are listed in the Environmental List of the Netherlands Enterprise Agency (RVO).

In addition to the MIA, the Vamil scheme offers you the possibility to depreciate 75% of the (environmental) investment costs at a time of your choosing. This can be done at once, over four years, ten years, twenty-five years etc. Fast tracked depreciation provides you with an interest and liquidity advantage, but depreciations over a longer period can also give benefits. You need to apply for MIA/Vamil within three months after committing to the investment obligations. If you are late, you will miss out on a substantial deduction.

More from the HBK Update June 2023

• New (temporary) legislation regarding box 3
• Holding on to definitive assessments and objections with income in box 3
• Restructuring box 3 assets before October 1st (valuation date arbitrage)
• Excessively lending act
• Limitations/Abolition of Business Succession Facilities
• Tax authorities will start checking for pseudo self-employment from 2025
• Convert loss from substantial interest into tax credit
• No tax-free allowance for each day working from home
• Repaying Deferred Tax Payments
• MIA and Vamil
• Reimbursement of costs for assistance with filing income tax return for foreign employees
• Co-operating spouses: Co-operating remuneration or co-operating tax deduction?