The Small Scale Investment Allowance, the KIA, is there to encourage investment in business assets. With this scheme, you can deduct up to a maximum of 28% of your investment in solar panels extra from profits.
If in a fiscal year invests in business assets, you may be eligible for the small-scale investment deduction (KIA). The business assets you invest in must be eligible for the investment deduction.
The KIA is a deduction from your profits. The amount you may deduct depends on the amount invested in the fiscal year. You can find the amount of the KIA in the table:
Small business investment deduction table 2024
To be eligible in 2024 for the small-scale investment deduction (KIA) you must invest an amount between €2,801 and €387,580 in assets for your business. The table shows the new percentages for this investment deduction.
| Investment | Small business investment deduction |
|---|---|
| not more than €2,800 | 0% |
| €2,801 to €69,765 | 28% of the investment amount |
| €69,766 to €129,194 | € 19.535 |
| €129,195 to €387,580 | € 19,535 less 7.56% of the portion Of the investment amount in excess of €129,195 |
| more than €387,580 |
Small business investment deduction table 2023
To qualify in 2023 for the small-scale investment deduction (KIA) you must invest an amount between €2,601 and €353,973 in assets for your business. In the table you will find the new percentages for this investment deduction.
| Investment | Small business investment deduction |
|---|---|
| not more than €2,600 | 0% |
| €2,601 to €63,716 | 28% of the investment amount |
| €63,717 to €117,991 | € 17.841 |
| € 117,992 to € 353,973 | € 17,841 less 7.56% of the portion Of the investment amount in excess of €117,991 |
| more than €353,973 | 0% |
Small business investment deduction table 2022
To qualify in 2022 for the small-scale investment deduction (KIA) you must invest an amount between €2,401 and €332,994 in assets for your business. The table shows the new percentages for this investment deduction.
| Investment | Small business investment deduction |
|---|---|
| not more than €2,400 | 0% |
| €2,401 to €59,939 | 28% of the investment amount |
| € 59,940 to € 110,998 | € 16.784 |
| €110,999 to €332,994 | € 16,784 less 7.56% of the portion Of the investment amount in excess of €110,998 |
| more than €332,994 | 0% |
Distribution of investment obligation in partnership
Was your business part of a partnership, such as a general partnership or a partnership? If so, the deduction is calculated differently. To determine the deduction, the total investment of the partnership is then considered rather than the investment of each company separately.
Each firm or partner assumes the portion of the investment that is proportional to its share of the (excess) profits.
For application of the investment deduction, you may apply a different division. The following conditions apply:
- all partners divide according to the same criterion
- distribution is made on a reasonable basis (see 'Distribution on a reasonable basis')
- the division applies to all forms of investment deduction
- the distribution applies to all corporate investments of the participants in the partnership
- When calculating the disinvestment addition, you may not use a different distribution than was used for the investment deduction
- a joint request incorporating the apportionment key and agreeing to the terms is submitted before the income tax or corporate tax assessment of 1 of the participants in the partnership is finalized
Distribution on a reasonable basis
Whether there is a reasonable division we judge. But you may make a distribution according to, for example:
- capital ratio
- shares of hidden reserves
- profit shares
- equal parts
No right to investment deduction
For some investments, you have no right to investment deduction.
Learn more
- General rules and conditions for the investment schemes