Generally, assets owned or used by a company for the purpose of its trade may be depreciated in accordance with sound business practice. According to Dutch tax law however, no more than 20% per year of the acquisition or production costs, less the residual value, may be depreciated on assets.
The maximum depreciation for goodwill is 10% per year.
Further restrictions apply with respect to the depreciation of buildings. Depreciation is not allowed when the book value of the building falls below the official fair market value of the property for tax purposes. Depreciation of owner-occupied buildings however is allowed until the book value of the building matches 50% of the official fair market value of the property for tax purposes. However, at the moment there are government plans to increase this percentage to 100% in 2019.
Depreciation begins on the date an asset is first used.
Dutch tax law also provides either accelerated or random depreciation. Accelerated or random depreciation is allowed for assets that have been appointed by the government.
Investments for the purpose of energy saving or environmental benefits are stimulated by tax incentives such as a supplementary deduction of the profits and allowing arbitrary depreciation.
Several other, direct subsidies or government loans on favourable conditions can be obtained for such investments.