KPMG comments on a tax incentive scheme (starting January 1, 1996) for the promotion of business investments in the economically weaker areas.

This is contribution number 31 by KPMG Meijburg & Co regarding a tax incentive scheme (starting January 1, 1996) for the promotion of business investments in the economically weaker areas.

The Undersecretary has decided to introduce a tax incentive scheme (starting January 1, 1996) for the promotion of business investments in the economically weaker areas. Entrepreneurs who invest in these regions are offered the possibility of accelerated depreciation on investments in new business premises. This provides entrepreneurs with a cash-flow advantage. The scheme is not only available to entrepreneurs who are already established in such areas, but also to those who are going to set up a business in such areas.

The scheme can be summarized as follows:

- The scheme is temporary and covers investments made in 1996, 1997 and 1998;
- The scheme will be applicable to investments in new business premises in municipalities situated in provinces with a weaker economic structure (i.e. Groningen, Friesland, Drente, Overijssel and Limburg);
- The total investment costs in new business premises should at least amount to Dfl. 5 million;
- The entrepreneur is allowed to apply an accelerated depreciation to 50% of these costs; the remaining costs will be subject to the normal depreciation system.

This message is most likely to be relevant for entrepreneurs who are anticipating to invest in the Netherlands

Further information can be obtained from mr Alfred GM Groenen, MCL, KPMG Meijburg & Co, Amsterdam (Netherlands); fax 31 (20) 656 1247, or enter text search 'KPMG Meijburg & Co', and 'Business Monitor'.

Keywords: Netherlands / Dutch / Europe / EC / EU / European Union / KPMG Meijburg & Co / inward investments / MNE / regional investment incentives / accelerated depreciation

Note: The content of this contribution is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.