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3.10.2024

Investment deduction from 2025: what do you need to know?

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Starting in 2025, the investment deduction will be reshaped with the goal of encouraging sustainable investments. With this, the federal government hopes to support the greening of the business environment. But what does this mean for your business? Is it smart to put off investments until next year, or is it better to take action this year?

 

What is an investment deduction?

The investment deduction allows businesses, both corporate and self-employed, to deduct a percentage of their investments from their taxable income. This percentage varies depending on the size of the business and the type of investment, such as security or digital assets.

Until now, there were two types of deductions:

  1. Ordinary investment deduction: Available to small companies.
  2. Increased investment deduction: Accessible to both small and large companies.

Changes in 2025: new categories

Beginning in 2025, these categories will be revised and expanded to include three new types of investment deductions:

  1. Basic deduction: 10% for small companies and the self-employed, with an increased deduction of 20% for digital assets.
  2. Thematic deduction: 30% for green investments by large corporations and 40% for the self-employed and small corporations.
  3. Technology Deduction: 13.5% for investment in technology, including patents and environmentally friendly innovations.

So what investments fall under the new categories?

Thematic deductions include investments in:

  • Efficient energy consumption and renewable energy
  • Carbon-free transportation solutions
  • Environmentally friendly assets
  • Supporting digital assets

The technology deduction was created for investments in patents and R&D (Research & Development) with a green focus.

 

Should I delay my investment?

Deferring investments until 2025 can have tax advantages, but it depends on the type of investment and the timing of planned spending. Here are some considerations:

  1. Basic deduction: This goes up only slightly from 8% to 10%. For regular investments covered by the basic deduction, deferral offers only a small tax benefit.
  2. Increased deduction for digital assets: This rises to 20%, which is especially advantageous for investments in software, CRM systems, e-commerce platforms and IT security. This makes deferral more attractive for digital innovations.
  3. Thematic deduction for green investments: This is where the big advantage lies. For replacements of aging, polluting plants, delaying an investment until 2025 can result in a deduction of 30% or even 40%. This is a significant savings and may be worth the wait.
  4. Less sustainable investments: If your investment is no longer eligible for deduction in 2025 because of existing greener alternatives, such as a gas boiler giving way to a heat pump, it's smart to still make these investments in 2024.

 

Conclusion: what is the best choice for your business?

The investment deduction reform offers interesting opportunities, especially for green and digital investments. Whether it is wise to defer an investment depends on the nature of the investment and the tax breaks that will become available next year. Keep in mind that the exact details of the scheme are still being worked out and there are specific exclusions for less sustainable options.

 


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