Is this instead of depreciation?

No, on top of it. You still depreciate the asset over its life; the KIA is an extra deduction in the year you invest, which is what makes timing an investment worth thinking about.

Do small purchases count?

Only assets of at least €450 each count towards the total, and your investments across the year are added together — several mid-sized purchases can cross the threshold that none would alone.

What is worth less than it looks?

For a sole trader the deduction lands before the mkb-winstvrijstelling, so part of its value is absorbed there. The full report prices that discount rather than quoting the headline deduction.

How much investment deduction do you get?

The KIA lets you deduct part of what you invest in business assets on top of the normal depreciation. Enter your planned investment for the year.

Your numbers

Planned investment this year

€

Total across all qualifying assets, excluding VAT.

Your answer

Deduction from profit

€5,600

Share of the investment: 28,0%
Qualifies for KIA: Yes

Free — no signup

On €20,000 of qualifying investment, the KIA deduction is €5,600 — 28,0% of what you invest. Qualifies: Yes.

How this is calculated

Below the entry threshold there is no deduction at all. Between the threshold and the end of the first band you deduct a percentage of the investment; inside the second band the deduction is a flat amount regardless of how much more you spend. Above that band it phases out, which this calculator treats as zero — the conservative direction. The total counts your investments across the whole year, each asset must cost at least €450, and some asset classes are excluded.

Rates and thresholds, tax year 2026

Entry threshold	€2,901
Percentage in the first band	28,0%
First band up to	€71,683
Flat deduction in the second band	€20,072
Second band up to	€132,746

Rule set verified as of 2026-07-19

Questions people ask

Is this instead of depreciation?: No, on top of it. You still depreciate the asset over its life; the KIA is an extra deduction in the year you invest, which is what makes timing an investment worth thinking about.
Do small purchases count?: Only assets of at least €450 each count towards the total, and your investments across the year are added together — several mid-sized purchases can cross the threshold that none would alone.
What is worth less than it looks?: For a sole trader the deduction lands before the mkb-winstvrijstelling, so part of its value is absorbed there. The full report prices that discount rather than quoting the headline deduction.

This article is general information for a one-person company (BV), not tax advice. Rules and figures change — confirm your situation with your accountant before acting.

Fiscalance Editorial · Updated 5 August 2026

Terms used here

Investment deductionBusiness expensesTaxable profit

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