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Investment tax credit

If an amount over USD 2,794 is invested in company assets in the course of a calendar year, 8% of the investment amount will be deducted from the profits in both the year in which the investment took place and the subsequent year. If this amount concerns an investment in new buildings or improvements to existing buildings, 12% of the investment amount will be deducted from the profits.

Did you sell a company asset in 2015 for which you received an investment tax credit? You may need to complete the divestment addition declaration.

Did you sell a building? You must complete the addition declaration if this took place within a period of 15 years after your investment in the building. The addition will be 12% of the investment amount.

Does it concern a different company asset? The period will be 6 years and the addition will be 8%.

Divestment addition

In case of the sale of a company asset for which you have received an investment tax credit, a divestment addition must take place for both the profit of the year in which the asset was sold and for the subsequent year. The addition amount consists of a percentage of the transfer price, but will not exceed the investment amount. This percentage depends on the percentages used for the investment (8% or 12%). A divestment will exist if the company asset is disposed of within 6 years (or 15 years, in case of buildings) after the start of the year in which the investment took place. If you have made investments for which you have claimed an investment tax credit, you must enclose a depreciation statement to your annual documents on which each company asset has been specified individually.

Disposal of an asset is defined as the sale of this asset.

Company assets

Company assets are assets you do not want to sell immediately, but which you use at your company for a number of years. These differ from purchases and inventory. Company assets are needed to manufacture your products or provide your services.

Examples of company assets are:

  • buildings, machines, cars, inventory, and other durable goods used for your operations (the material assets)
  • permits and other immovable matters that are useful to your company and which use leads to a loss of value of the permits (the immovable properties)