Investments 2023: investment deduction percentages changed
October 2023 - Through the investment deduction, a company can exempt part of its profits for certain new investments made during the taxable period. What (changed) percentages for the investment deduction should you take into account?
One-off investment deduction
For investments obtained or made between 12/03/2020 and 31/12/2022, an increased one-off investment deduction of 25% for sole traders, liberal professions and small companies temporarily applied. For investments made since 1 January 2023, this rate is again 8%.
As a result of the increase in the consumer price index, the rates for companies for "special investments" were increased in relation to assessment year 2024. For investments obtained or created from 01/01/2023 linked to assessment year 2024, the following rates apply:
· 20.5% for patents, environment-friendly investments for research and development, energy-saving investments and smoke extraction or ventilation systems in catering establishments
· 20.5% for digital fixed assets for integration and operation of payment and billing systems and security of ICT + additional investments (only for small companies)
· 27.5% for investments in security (only for small companies)
For investments made from 01/01/2023 linked to assessment year 2023, the so-called broken financial years, the following percentages apply:
· 13.5% for patents, environment-friendly investments for research and development, energy-saving investments and smoke extraction or ventilation systems in catering establishments
· 13.5% for digital fixed assets for integration and operation of payment and billing systems and security of ICT + additional investments (only for small companies)
· 20.5% for investments in security (only for small companies)
For small companies, it makes sense to check whether they cannot use the special investment deductions, instead of the ordinary one-off investment deduction of 8%.
The percentage of investment deduction for the following investments is again the same:
· 42% for carbon emission-free trucks + electric charging infrastructure
· 30% for seagoing vessels
· 3% for reuse of packaging
Spread investment deduction
Besides the one-off investment deductions, there is also the spread investment deduction. The spread investment deduction takes into account the depreciation adopted for tax purposes. The spread investment deduction for research and development applies to small and large companies.
For depreciation done on environmentally friendly investments for research and development, the investment deduction is 27.5%. This percentage applies to investments obtained or made since 1 January 2023 linked to assessment year 2024. For large and small companies investing since 1 January 2023 connected to assessment year 2023, the investment deduction amounts to 20.5% for environmentally friendly investments for research and development.
