Small-scale investment deduction (KIA): here's how to benefit in 2026

What is the small-scale investment allowance (KIA)?

The small-scale investment deduction is a tax benefit for entrepreneurs who invest in their business. You get an extra deduction on top of the normal depreciation. This reduces your profits and therefore your tax burden.

Think of investments in machinery, computers, means of transport or office equipment. The scheme rewards entrepreneurs who actively invest and is especially interesting for those who spend smaller or medium amounts.

Conditions for the KIA in 2026

To benefit from the KIA in 2026, the following conditions apply:

• You invest a total of between €2,901 and €398,236.
• An asset of less than €450 does not count. Assess related components as a single asset where applicable.
• The asset qualifies for KIA; check the exclusions below.
• Your company is liable to income or corporate tax.
• Second-hand purchases count as long as they are used for business purposes.

The limit of €450 per asset is somewhat different from the annual limit of €2,901. Calculate excluding VAT that you can reclaim; non-reclaimable VAT is part of the investment.

You don't have to apply for the KIA separately; you process it directly in your income or corporate tax return.

Calculate KIA in 2026

KIA amounts and deduction rates 2026

Source: official KIA table 2026.

Two worked examples

Fictional, all business assets qualify and are brought into use in 2026:

• For an investment of €5,000: 28% × €5,000 = €1,400 KIA.
• With an investment of €150,000: €20,072 - 7.56% x (€150,000 - €132,746) = around €18,768 KIA.

This is an extra deduction from your profit, not a payout. The normal depreciation is separate from that. See for example how to depreciate a business laptop.

What is covered by the small business deduction?

The KIA applies to durable business assets that you use for a longer period of time. Think of machines, tools, vehicles, computers, inventory or software. Used business assets also count, as long as they have a business function.

Exceptions: no right to KIA

Certain investments are excluded from the scheme:

• Residential property, land, animals, shares and goodwill
• Passenger cars not intended for commercial transport
• Business assets that you mainly rent out or use abroad
• Assets transferred from your private assets to your business
• Certain transactions within your household, with blood relatives and relatives by marriage in the direct line, or with a private limited company in which you are a shareholder

Not every family purchase is excluded. For some transactions you can apply for an exemption. Check the exclusions from the investment deduction for your situation.

Which year counts: order, payment or commissioning?

Entering into the investment commitment determines the investment year, for example by accepting a quotation. If you do not yet put the asset into use, the amount paid may limit the deduction in that year. Keep the order, invoice and proof of payment. Read the rules for the deduction year.

Smart investing in a loss-making year

KIA can increase a fiscal loss. Set-off depends on the applicable loss rules and available income or profits. Only buy if the investment is commercially necessary and affordable: tax relief does not make an unnecessary purchase profitable.

Repaying KIA on disposal (desinvesteringsbijtelling)

If you sell an asset within five years from the start of the investment year, you may have to add back part of the investment deduction to your taxable profit. Check the combined value of the relevant disposals in that year: this may apply if the total exceeds €2,900. The amount added back cannot exceed the deduction previously received. The five-year period does not start on the anniversary of the purchase date.

Multiple investment deduction schemes (MIA and EIA)

KIA may be combined with EIA or MIA under certain conditions. Those schemes have their own eligible-asset lists, notification deadlines and other requirements. For a comparison and an explanation of the repayment rules on disposal, see the investment deduction overview.

Do you want to have your administration and tax returns taken care of? View the Van Passe package and the conditions.

Previous years: KIA 2025 and 2024

KIA amounts and deduction rates 2025

For example, if you invest €50,000 in equipment in 2025, you can deduct an additional €14,000 from your profits.

KIA amounts and deduction rates 2024