June 10, 2025
What is the Small-Scale Investment Deduction (KIA)?
Are you planning to buy a laptop or a company phone?
Then it’s smart to consider the Small-Scale Investment Deduction (KIA). By making investments, you can benefit from tax advantages. It’s important, however, to handle your investments correctly so you don’t miss out on this deduction. In this article, we explain what the KIA is and give you tips to make the most of this tax benefit.
What is the Small-Scale Investment Deduction?
The KIA is a tax deduction for income tax and corporate tax available to entrepreneurs who make investments.
2023: In 2023, if you invest more than €2,600 in business assets within a fiscal year, you can use the KIA. You may deduct 28% of the investment amount. There’s also a limit: if you invest between €63,717 and €117,991, the KIA is capped at €17,481 instead of 28%. If you invest more than €117,991, the KIA is €17,481 minus 7.56% of the portion above €117,991.
2024: In 2024, the KIA applies for investments starting from €2,801. You can deduct 28% of the investment amount. For investments between €69,840 and €129,330, the KIA is €19,555 instead of 28%. For investments exceeding €129,330, the KIA is €19,555 minus 7.56% of the amount above €129,330.
2025: In 2025, you can use the KIA for investments starting at €2,901. Again, you can deduct 28% of the investment amount. For investments between €70,603 and €130,744, the KIA is €19,769 instead of 28%. For investments above €130,744, the KIA is €19,769 minus 7.56% of the amount exceeding €130,744.
Example: If you invest €3,200 in 2025, you are below the cap, so you can deduct €3,200 × 0.28 = €896 from your profit.
Which costs qualify as investments?
Only business assets with a purchase value above €450 excluding VAT count as investments for the KIA. If you cannot reclaim VAT (for example, in the healthcare sector), business assets above €450 including VAT qualify. You can read more in another article about what counts as an investment.
Business assets that do not qualify for the KIA
Certain investments are excluded from the KIA:
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Passenger cars not used for business transport
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Investments in certain business assets such as residential property, land, animals, representative vessels, securities, receivables, goodwill, and public permits
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Business assets purchased for use abroad
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Business assets used at least 70% for rental
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Private business assets contributed to the company
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Assets purchased from family members or people within your household
Tips to reach the €2,600 threshold (for 2023)
€2,600 can be a high threshold for some entrepreneurs. Here are a few tips to reach it:
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Plan multiple investments in one fiscal year
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Spreading small investments over several years may prevent you from qualifying.
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For example, if you make three investments of €1,000 each in one fiscal year, you exceed €2,600 and can use the KIA. If spread over three years, you fall short each year and miss the deduction.
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Investment ideas to reach the threshold
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Laptop
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Phone
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Earphones/headset/headphones
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Company bike
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Keyboard/pen for an iPad (iPad and keyboard count as one investment)
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Software and POS systems
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Desk, office chair, etc. (only if the workspace meets certain conditions)
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Camera
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Website (not always eligible)
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The Small-Scale Investment Deduction is a valuable tax benefit for entrepreneurs making investments. Planning your investments carefully and keeping an eye on the €2,600 threshold for 2023 (€2,849 for 2024) ensures you don’t miss out on this deduction. Missing it by just a few euros would be a shame!
