# Deducting costs from your tax return: amortisation

## What are company assets ?

caller assets are investments that you use to run your company, and that are not meant for sale. You need company assets to make your products or provide your services. Examples of company assets are :

• Buildings, machines, vehicles, and inventory such as computers, desks, equipment and tools
• goodwill, permits and licences

### What is goodwill?

A company’s goodwill is a unique brand, patent, recipe, or product, that increases the value of a company. For instance, if you have a unique recipe for bread, and the bread sells so well that it increases your company profit, that recipe is company goodwill. It is difficult to put a precise price on goodwill. Ask a financial advisor for help, if you want to determine your business goodwill.

## What is amortization ?

Is the monetary value of acquiring your party asset €450 or less ? then you are allowed to deduct the integral measure from your earnings in your tax render .

## different amortization percentages

• Most investments have a maximum depreciation rate of 20%. The amortisation of the asset takes a minimum of 5 years.
• Goodwill is depreciated by a maximum of 10% per year.
• There are different rules for the depreciation of business premises (in Dutch).

## analogue calculation

The method used most often is linear calculation. When you use this method acting, you write off a fix percentage of the deviation between the purchase monetary value and the residual rate annually. The recipe for linear calculation is : amortization per year = ( cost of purchase – residual value ) / expected duration of use

### Example: calculating the amortisation on a laptop

cost of buy You buy a laptop for € 1,000. This is the cost of purchase.

Expected duration of use A minimal duration of function of 5 years is common for amortisations. In 5 years ’ time, your laptop will be outdated, compared to the laptops for sale at that time. consequently, the expect duration of use for your laptop is 5 years. residual rate A 5 year-old laptop is outdated, and its economic prize reduced to nothing. Your laptop ’ s remainder prize is €0.

Amortisation calculation ( € 1.000 – € 0 ) / 5 = € 200 per class You can find more information on how to calculate the disparagement of your assets on the dutch Tax and Customs Administration web site ( in Dutch ) .