Good news for entrepreneurs planning to invest in their businesses in 2023, as the government has issued a one-time random depreciation ruling. This scheme was previously in place in 2009, 2010 and 2011, and is now being reinstated. It is in addition to the already existing arbitrary deduction schemes such as Vamil.
Thanks to the new ruling, if you invest in an asset this year, you can take a one-time random depreciation of up to 50% of the investment amount. By taking that 50% depreciation right away in 2023, you reduce your taxable profit and thus pay less tax. The remainder must be depreciated regularly in subsequent years.
However, if you want to apply the random depreciation, you must take into account a number of conditions. For example, the scheme only applies to business assets purchased in 2023, and thus not, for instance, to machinery that has already been put to use. Therefore, in the calendar year 2023, you must make commitments for the purchase or incur so-called production costs (in the case of an asset that the company manufactures itself). Your company must then put the asset into use before January 1, 2026.
A number of assets are excluded from random depreciation, such as buildings, ships, aircraft and assets intended for rental to third parties. Further exceptions are intangible assets such as permits and goodwill, animals and roads and paths open to public traffic, including bridges, viaducts, culverts and tunnels.
Passenger cars that are not intended for professional transport are in principle also not covered by the extended depreciation. However, there is an exception for passenger cars with zero emissions. This is a car for which the registration certificate shows that the emission is zero grams CO2 per kilometer.
For advice on your personal situation, contact Blue Umbrella.