The Dutch government wants to use BIK (job-related investment credit) as an incentive for employers to make investments during the economic crisis resulting from the corona virus. The aim would be to promote earlier investments. BIK is a temporary measure and the government assumes that it will no longer be needed after 31 December 2022. In its amending letter to the 2021 Tax Plan the government proposes to apply BIK in the form of payroll tax and national insurance contributions credit.
The advantage of this form of tax and contribution credit is that in case of equal investments, the allowance will be the same for all employers. This means that it will not just benefit profit-making businesses. As BIK is linked to payroll tax, employers will only benefit from it if they are employing enough staff (wage bill) have enough employees (wage bill) to be eligible for reductions on payroll tax returns. BIK is a temporary supplement to more specific, incentive measures to invest that are already applicable, such as KIA (small projects investment credit), EIA ( energy-saving investment credit ), MIA (environmental investment tax scheme for businesses) and VAMIL (arbitrary depreciation of environmental investments). You can benefit from all these regulations simultaneously.