The investment deduction amount (IAB) is a tax planning instrument for companies and self-employed persons that allows future investments, for example in vehicles, to be claimed against tax even before they are purchased. In fleet management in particular, the IAB can help to conserve liquidity and optimize planned vehicle purchases for tax purposes.
What is the investment deduction?
The investment deduction in accordance with Section 7g EStG allows companies to deduct up to 50% of the expected acquisition costs for movable fixed assets, e.g. cars, vans or special vehicles, for tax purposes in advance. The investment must be made within three years of the creation of the IAB.
Requirements for the IAB
Certain conditions must be met before an investment deduction can be claimed:
- Business size: For businesses that prepare balance sheets, a maximum limit of € 235,000 in business assets applies, for revenue-surplus accountants a maximum profit of € 200,000.
- Planned investment: There must be a serious intention to purchase or manufacture the asset (e.g. a vehicle) within three years.
- Business use: The vehicle must be used at least 90% for business purposes.
Application in the vehicle fleet
The IAB can be particularly useful when planning new vehicles in the fleet:
- Tax advantage in the previous year of purchase: The tax burden can be reduced even before the purchase.
- Liquidity advantage: more capital remains available for other operational purposes.
- Planning certainty: This facilitates targeted preparation for upcoming investments in the vehicle fleet .
Example from fleet management
A company is planning to purchase three new company vehicles with a total value of € 120,000 in the coming year. An IAB of up to € 60,000 (50%) can already be formed in the current year and deducted from profits – resulting in significant tax savings.
Dissolution and obligation to provide evidence
As soon as the vehicle is purchased, the deduction must be reversed to increase profits. In the course of the investment, the actual acquisition costs must then be verified and booked accordingly. If no investment is made, the IAB must be reversed, including interest.
Conclusion
The investment deduction is an effective instrument for optimizing forward-looking investments in the vehicle fleet for tax purposes. Small and medium-sized companies in particular benefit from this opportunity to prepare financially for planned vehicle purchases and reduce their tax burden in a targeted manner. What is important here is proper documentation and strategic planning.