Conditions of the small-scale investment deduction

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tasmih1234
Posts: 114
Joined: Sat Dec 28, 2024 10:32 am

Conditions of the small-scale investment deduction

Post by tasmih1234 »

There are a number of conditions to take advantage of the KIA scheme:

Passenger cars may not be included as investment in business assets (exception for passenger cars intended for professional transport such as cabs or delivery services)
Investment lower than 450 euros should not be counted
If your investments do not exceed 2,600 euros, you are not entitled to the small business deduction.
If your investments exceed 353,973 euros, you are also not entitled to the small business deduction.
Amounts and percentages small-scale investment deduction 2023
Investment of Small business investment deduction 2023
No 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 italy mobile numbers list portion of the investment amount above € 117,991
More than €353,973 0%
Use BerekenHet' s free tool to easily calculate how much you are entitled to the KIA.

Example small business investment deduction
The company makes a taxable profit of 200,000 euros. Normally, the entrepreneur there would pay 200,000 * 0.19 = 38,000 euros corporate tax.

The entrepreneur has made an investment of 120,000 euros that falls within the conditions of the KIA. This entitles the entrepreneur to deduct 17,690 euros from his taxable profit.

The entrepreneur then deducts this amount from his taxable profit, which reduces the tax payable to (200,000 - 17,690) * 0.19 = €34,638.90.

This leaves the entrepreneur with a benefit of 38,000 - 34,638.90 = 3,361.10 euros.
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