Investment allowance

This scheme allows a certain percentage of the sum invested in fixed assets in a particular year to be deducted when calculating the taxable profits. Investments are divided into nine tranches, where the percentage of the allowance decreases with increase in investment. In 1999 the lowest tranche is applicable to investments between NLG 3,900 and NLG 65,000, and the highest tranche is applicable to investments between NLG 503,000 and NLG 566,000. The corresponding percentages are 27% and 3% respectively. Certain fixed assets are excluded from the investment allowance. If fixed assets for which an investment allowance was obtained in the past are sold within five years of being purchased then the investment allowance is withdrawn either wholly or in part. Furthermore, there is an investment allowance in respect of investments in energy saving business assets, placed on an Energylist. For investments over NLG 3,900 up to NLG 65,000 the allowance is 52%. The percentage of the allowance declines as the amount of the investment increases. The maximum allowance is 40% of NLG 208 mln.