The ‘baangerelateerde investeringskorting’ (job-related investment tax credit), abbreviated as BIK, has been elaborated in the Tax Plan 2021. The BIK is temporary and permits an organization to deduct a percentage job-related investments from the payroll tax due.
An organization can apply for the BIK if they have invested in business assets obtained on or after October 1, 2020. Moreover, the last instalment for the assets must be paid between January 1, 2021 and December 31, 2022 and your organization must make full use of the obtained assets within six months after this last payment. The tax credit is 3% of an investment up to € 5 million and 2,44% of an investment above € 5 million. An organization must invest at least € 20,000 in order to apply the BIK. Furthermore, because the BIK lowers the payroll tax due, an organization must employ enough staff (and hence have enough payroll tax liability) in order to be eligible for the tax credit.
The BIK is a temporary addition to several pre-existing tax credits which have been implemented to stimulate investment, such as the ‘kleinschaligheidsinvesteringsaftrek’ (small-scale investment tax credit), the ‘energie-investeringsaftrek’ (investment-in-energy tax credit), the ‘milieu-investeringsaftrek’ (environment tax credit) and the ‘willekeurige afschrijving milieubedrijfsmiddelen’ (arbitrary tax credit for environmental assets). It is possible to apply several of these tax credits simultaneously if they are applicable to the investment in question.