Investment deduction of 25% for SMEs
The one-off investment deduction is an extra deduction that companies (SMEs and self-employed persons) can enjoy on top of the ordinary write-off. This can be done specifically for new, professional investments that are depreciable over a period of at least 3 years.
This one-off investment deduction amounts in principle to 8%, but was increased to 20% from 1 January 2018 to 31 December 2019.
Increase from 8% to 25%
In order to stimulate investments, the legislator provided for a new increase to 25% for investments obtained or made between 12 March 2020 and 31 December 2020.
Transfer of unused investment deduction
As the pandemic is putting strong pressure on the profits of companies, which means that the investment deduction carried forward from 2019 might not be fully utilised, the transfer of the unused portion of the investment deduction for investments made or obtained during the year 2019 is extended to the next two taxable periods (instead of only the next taxable period).
We base our advice on current legislation, interpretations and legal doctrine. This does not prevent the administration from being able to challenge it or to change existing interpretations.