On Budget Day 2020, the Dutch government announced its intention to introduce a new investment allowance. This is the so-called ‘Job related investment discount’ or ‘BIK’. This week, the government submitted the proposal for this regulation to the Dutch Lower House for further debate. In this tax alert we will discuss the most important aspects of this new investment allowance regulation.

What is the BIK?

The BIK is an investment allowance for entrepreneurs that invest in new business assets. A share of the costs of these investments can be offset against the payroll taxes that employers pay. In order to apply for the BIK, certain conditions should be met.

  • The investments are made between 1 October 2020 and 31 December 2022.

  • The assets must be fully paid between 1 January 2021 and 31 December 2022. Additionally, the use of these assets within the company must start within six months after its payment.

What amount can you claim based on the BIK?

The amount of the investment allowance is dependent on a percentage of the total amount of the investments that an entrepreneur made. In order to qualify for the BIK, the total amount of investments must exceed a threshold of EUR 20,000. Additionally, there is an investment threshold of EUR 1,500 per new asset. The table below shows the amount of the allowance schematically.

Total investment amount Job related investment allowance
Up to and including EUR 20,000 0%
EUR 20,001 to EUR 5,000,000 3%
Exceeding EUR 5,000,000

(amount in excess of EUR 5 mio.)

Concurrence with other investment allowances

The BIK is an addition to the existing investment allowances. This implies the following:

  • The Small-scale investment allowance (KIA) and the BIK can be combined.
  • Entrepreneurs who invest in environmentally friendly assets can benefit from using both the BIK and other existing investment allowances for environmentally friendly investments.

This implies that the BIK can be used simultaneously with the existing investment allowances.


The application for the BIK can be submitted with the Rijksdienst voor Ondernemend Nederland (RVO) starting from 1 September 2021. You will then receive a BIK declaration which enables you to offset part your investment costs with your payroll taxes.


Do you have any questions about the BIK or would you like to receive more detailed information? Please do not hesitate to contact Monique Pisters.