MIA and Vamil 2020
The MIA and the Vamil scheme stimulate investments in environmentally friendly business assets. Our aim is to bring innovative environmentally friendly products to the market faster. Everything to know about the MIA and Vamil schemes can be found here.
What does MIA/Vamil entail?
MIA and Vamil are schemes which enable you to enjoy a tax benefit. With the Environmental Investment Allowance (MIA), the percentage of the tax reduction depends on the environmental effects, and prevalence of the business asset. The investment deduction amounts to 13.5%, 27% or 36% of the investment amount and is charged to the profit, so that you pay less (corporate or income) tax. Vamil makes it possible to depreciate the asset for 75% of the costs in the year of purchase. The other 25% is regularly written off. Purchase costs, production costs and adjustment costs are eligible for the MIA and Vamil schemes.
Who can apply for MIA and Vamil?
Both tax schemes are open to Dutch companies that invest in environmentally friendly resources. Depending on the business asset, the schemes can be applied for jointly or separately.
How much is the tax benefit?
What are the MIA / Vamil percentages? The MIA budget for 2020 is €124 million. The MIA budget for 2021 is €114 million. A maximum of 36% of the costs of an environmentally friendly investment can be deducted additionally from the taxable profit, in addition to regular depreciation. €25 million will be available for Vamil in 2020. Under this scheme, a maximum of 75% of the investment costs can be arbitrarily written off from the taxable profit.
What are the conditions?
To qualify for the MIA and/or Vamil 2020, investments must be listed on the Environmental List 2020. This list consists of six investment categories:
- Raw materials and water use: variable packaging machine, rainwater installation, various waste separation installations
- Food supply and agricultural production: Green Label greenhouse, test barn, gastight facility for a slurry storage, sustainable dairy barn or pig barn, cultivation system for leafy crops on water, site-specific fertilization equipment, sustainable fish farm, recovery installation for phosphate or nitrogen from animal manure
- Mobility: electrically powered vehicle, electric or hydrogen truck, sustainable propulsion for a vessel, electric forklift, charging point for electric vehicles or vessels
- Climate and air: equipment for separating, transporting or binding CO2, boiler with integrated low NOx burner, (biological) desulphurisation plant, closed loading system, dust collector, biological waste gas washer
- Use of space: fish guidance system, groundwater remediation system, gas detection equipment, cadmium removal installation from fertilizer
- Built environment: circular house, very sustainably renovated or further highly sustainable utility building, sustainable concrete product with at least 30% recycled content, modular reusable wall system, vegetation roof, provision for buffering rainwater
In addition, investments must meet the following conditions:
- The investment must equal at least €2,500 per business asset
- The investment must relate to purchase and production costs
- An application can only be made within three months of the investment being made
- MIA may not be combined with the Energy Investment Allowance (EIA) for the same investment amount
When is the deadline?
For investments that are on the Environmental List 2020, an application must be submitted within 3 months of order confirmation.
The MIA budget for 2020 is €124 million. The MIA budget for 2021 is €114 million. € 25 million is available for Vamil in both years 2020 and 2021.
MIA and Vamil combine
Depending on the type of investment, you can combine the MIA and Vamil tax schemes. The investment must be listed on the Environmental List 2020. Each asset on this list has its own code. With some of these codes it is possible to combine MIA and Vamil.
MIA and Vamil calculation example
How can you calculate MIA and Vamil subsidies? Suppose company X invests in a green roof. This investment is on the Environmental List. Immediately afterwards, the company applies for the MIA and Vamil tax scheme. After being granted the benefits, the company may charge 36% of the investment amount additionally to the taxable profit and in addition, immediately write off 75% of the investment. As a result, company X pays considerably less tax for that year.
Many entrepreneurs who carry out sustainable business make use of different schemes. In addition to the MIA and Vamil schemes, you can also enjoy a tax benefit with the Stimulation of Sustainable Energy Transition (SDE++) and the Investment Subsidy for Sustainable Energy (ISDE). These schemes are not about investing in environmentally friendly technologies, but about investing in energy-saving or sustainable technologies.
Want to know more about MIA and Vamil?
DB&P consultant, Jan Egberts, is an expert in the field of financing for sustainable business. Please contact us without obligation. Jan is more than happy to speak to you!