MIA and Vamil 2023

• What does MIA/Vamil entail?
• Who can apply for MIA and Vamil?
• How much is the tax benefit?
• What are the conditions?
• When is the deadline?
• Budget
• MIA and Vamil combine
• MIA and Vamil calculation example
• Sustainable arrangements

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 27%, 36% of 45% 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 2023 is €192 million. A maximum of 45% 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 2023. 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 2023, investments must be listed on the Environmental List 2023. This list consists of six investment categories:

1. Raw materials and water use
2. Food supply and agricultural production
3. Mobility
4. Climate and air
5. Use of space
6. Built environment

To be eligible for the MIA scheme and/or the Vamil scheme in 2023, the investments must be on the 2023 Environmental List. In addition, the environmentally friendly 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 2023, an application must be submitted within 3 months of order confirmation.

Budget

The MIA budget for 2023 is €192 million. € 25 million is available for Vamil in 2023.

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 2023. 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 45% 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.

Sustainable arrangements

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.