Global Tax Alert | 28 June 2013

Dutch government acts to stimulate business investments

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Introduction

To stimulate investments by Dutch taxpayers, the Dutch government announced on 28 June 2013 that Dutch taxpayers investing in business assets will be allowed to immediately deduct 50% of the total amount of the investment in the year of the investment.

Regulation for the arbitrary depreciation of business investments

In general, based on Dutch tax law, the annual depreciation of business assets may not exceed 20% of the acquisition price or production costs. In order to stimulate investments in new assets used in the business enterprise, the Dutch government now announced that Dutch taxpayers will be allowed to immediately depreciate up to 50% of investments in business assets during the period 1 July 2013 through 31 December 2013, which will provide taxpayers with a liquidity advantage. Taxpayers can also decide to depreciate a smaller amount (i.e., for instance 40%) of the investment. It is required that the business assets will be used in the business enterprise before 1 January 2016.

For additional information with respect to this Alert, please contact the following:

Ernst & Young Belastingadviseurs LLP, Amsterdam
  • Johan van den Bos
    +31 88 407 1457
    johan.van.den.bos@nl.ey.com
Ernst & Young Belastingadviseurs LLP, Rotterdam
  • Michiel Swets
    +31 88 407 8517
    michiel.swets@nl.ey.com
Ernst & Young LLP, Belgium-Netherlands Tax Desk, New York
  • Dirk Stalenhoef
    +1 212 773 3390
    dirk.stalenhoef@ey.com
Ernst & Young LLP, Belgium-Netherlands Tax Desk, Chicago
  • Frank Schoon
    +1 312 879 5508
    frank.schoon@ey.com
Ernst & Young (China) Advisory Limited, Belgium-Netherlands Tax Desk, Shanghai
  • Bas Leenders
    +86 137 0199 4869
    bas.leenders@cn.ey.com
Ernst & Young LLP, Dutch Tax Desk, London
  • Jelger Buitelaar
    +44 20 795 15648
    jbuitelaar@uk.ey.com

EYG no. CM3584