In order to continue to stimulate companies, the government has provided extra support in the form of a reduction of remittances for investments in company resources. This is a part of the 2021 tax plan. Although this plan has not yet been definitively adopted in the 2nd and 1st Chamber, it is expected.
In short, the BIK means:
The BIK amounts to 3% of investments up to € 5 million per calendar year and 2.44% of investments part for investments exceeding € 5 million. The BIK can be deducted from the payroll tax. In addition, a lower limit of € 1,500 per business asset and € 20,000 per application applies to all applications. The cabinet is making € 2 billion per year available for BIK. The scheme is temporary and does not apply to investments made after December 31, 2022.
The investment discount only applies to new investments in business assets, of which the investment obligation was entered into on or after October 1, 2020. The investments must be paid in full between January 1, 2021 and December 31, 2022 and taken into use within six months after full payment.
For every investment, a BIK statement must be requested and an declaration being issued by the tax authorities. The application must be submitted at least 3 months after the end of the calendar year in which the last payment for the investment was made.
The BIK cannot be used for all company assets. The business assets referred to in Article 3.45 of the Income Tax Act 2001 are excluded as well as business assets for which obligations have been entered into as referred to in Article 3.46 of that Act or Article 8, eighth paragraph, of the Corporate Income Tax Act 1969.
If you have any questions, please contact your contact person at A&T Partners.
THIS MEASURE HAS BEEN WITHDRAWN AS PER 1-1-2021
Source: Amendment of some tax laws and some other laws (Tax Plan 2021) SECOND NOTE OF AMENDMENT