Everything you need to know about small investment deductions (KIA)

Everything you need to know about small investment deductions (KIA)


What are deductions?

As a businessman, you often have to pay taxes. Many entrepreneurs do not see this as their favorite activity, but it is still good to immerse yourself in this as an entrepreneur. If you do it wisely, you can save a lot of money. The tax authorities have created what are known as cutting objects. These are just some of the goal setting shareware that you can use. As a result, the profit you pay for taxes is lower and you should end up paying less.

We have various deductions for entrepreneurs. For example, entrepreneurs who meet the hour requirement have the right to self-employment and start-up entrepreneurs may also use founder deductions. Entrepreneurs who invest in their companies are entitled to cut off small investments.

When do I have the right to KIA?

KIA is for all entrepreneurs who invest between € 2,401 and € 332,994 in their business assets. The amount you can cut depends on the amount you have invested in your own company. As you can see in the table below, it is more profitable to invest an amount between € 2,401 and € 59,939. If you invest less, you have no right to deduct at all and if you invest more, your deductions will remain 28% of € 59,939 and therefore € 16,783.