Beneficial Tax Policy II

On January 13, 2013 we sent you a newsflash informing you about a series of measures introduced under the beneficial policy (begunstigend beleid). Those measures were the result of the Social Dialogue about tax reforms and the water and energy policy, and have yet to be formalized in legislation.

Earlier today, in anticipation of further legislative amendments, the Minister of Finance, Communication, Utilities and Energy announced the introduction of a further series of attractive tax measures. The main points of those measures, essentially constituting a tax reform, are explained below.

Extension of temporary investment deduction facility

A temporary investment deduction facility was introduced on January 1, 2011 under which, if certain conditions are met, a deduction may be claimed for income tax and profit tax purposes of up to 6% of amounts invested in operating assets. Originally this temporary investment deduction facility was to be offered for the years 2011 and 2012 only. However, based on the beneficial tax policy that has now been published the temporary investment deduction facility will remain in place for investments made during the years 2013 and 2014.