The cabinet is adding a new support measure in the context of corona to the 2021 Tax Plan: the Job-related investment tax credit (BIK). This temporary arrangement encourages companies to continue to invest in, for example, new machines, even in these turbulent times. Companies can offset this investment discount with the payroll tax to be paid.
What is BIK?
With the BIK, companies can deduct 3% of their investments up to € 5 million per calendar year and 2.44% of their investments for the excess from their payroll tax. In addition, a lower limit of € 1,500 per business asset and € 20,000 per application applies to all applications. A company can submit a maximum of 4 applications per year. The cabinet is making € 2 billion per year available for BIK. 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.
BIK in combination with other measures
BIK is an addition to existing incentive measures such as KIA, EIA, MIA and VAMIL. The BIK can coexist with these schemes.
How to apply for BIK?
The scheme is implemented by the Netherlands Enterprise Agency (RVO) in collaboration with the tax authorities. For technical implementation reasons, companies that qualify for the BIK cannot apply for it immediately. The application desk will open no later than 1 September 2021. The maximum turnaround time for the issue of a BIK statement after the application has been received by RVO is then 12 weeks. After receiving the statement, companies can set off the discount against the payroll tax.
Source: Rijksoverheid
