The MIA/Vamil scheme supports companies investing in environmentally friendly equipment.
With the MIA, you can deduct an additional percentage of the investment costs from your taxable profit, on top of regular depreciation. Depending on the category listed on the Environmental List, the deduction amounts to 27%, 36% or 45% of the investment costs of a qualifying asset. This results in a net benefit of approximately 5% to 12% of the investment amount.
With the Vamil, you can additionally depreciate up to 75% of the investment costs through accelerated depreciation at a time that is most fiscally advantageous. This does not provide an additional deduction percentage, but results in a cash flow and interest benefit by bringing depreciation forward. To qualify, the application must be submitted to the Netherlands Enterprise Agency (RVO) within three months of entering into the investment commitment.
The MIA/Vamil are fiscal incentive schemes rather than traditional grants. The benefit is applied through the tax return and reduces the company’s taxable profit. To be eligible, the asset must meet the description and technical requirements set out in the applicable Environmental List. In many cases, this concerns specifically listed innovative technologies, although broader environmentally beneficial measures may also qualify.
Would you like to know whether your investment qualifies for the MIA and/or Vamil? Feel free to contact us so we can explore the possibilities together.