Random depreciation of investments

As a temporary measure to stimulate investments, the Dutch government has announced that corporations and self-employed persons are allowed to randomly depreciate their investments as of 1 July 2013.
With this temporary measure the government aims at an overall liquidity surplus for business owners. The government expects business owners to invest significantly more due to this measure.

All investments done during the period July 1 up until December 31, 2013 may be depreciated to a maximum of 50% of the investment taking into account the assets salvage value.

Criteria to randomly depreciating assets and investments

By randomly depreciating his assets the entrepreneur or self-employed person is able to lower his business profit of that fiscal year and thus pays less taxes.
Are there any criteria imposed?

Yes, there are a couple of criteria to be met, if one wants to randomly depreciate. The main criteria are:

  • The investment has to be done in the period starting from 1 July 2013 till 31 December 2013.
  • The asset must be taken into use before 1 January 2016, or else the random depreciation will cancelled.
  • The investment may be depreciated off to a maximum of 50% of it’s original value off the operating profit in 2013.
  • The remaining value of the asset must be depreciated at the normal rate based upon Dutch tax law.
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