What are depreciations in NettoWise

Explanation of depreciations, business assets, and how NettoWise handles them.

Depreciations apply to business assets that you use for multiple years. Instead of deducting the full purchase cost in a single year, you spread the cost across the years you use the asset.

Business assets are durable items you use to deliver products or services, not to sell directly.

What counts as business assets

Business assets are items you use for multiple years in your company. Examples:

Tangible assets such as machines, cars, inventory, or other durable items.
Intangible assets such as permits that lose value over time.

Why you depreciate

Because business assets last longer than 1 year, you should not deduct the full cost at once. You spread the cost over multiple years. This makes your profit per year more realistic and aligns your tax calculation with the period you use the asset.

If you buy an asset for less than EUR 450, you can usually deduct it in full as a cost.

How NettoWise handles depreciations

NettoWise treats depreciations as a separate category next to business costs. The depreciation lowers your profit per period, which reduces your taxable income in box 1 and lowers your tax calculation.

	Amount
Gross profit	EUR 10,000
Business costs	EUR 100
Depreciation	EUR 250
Profit	EUR 9,650

Source and further reading

For official guidance, see the Dutch Tax Administration: Wat is afschrijven?.

Swen van Zanten

Developer

How to register a depreciation in NettoWise

Step by step adding a depreciation, with an example for a car.

Accelerated depreciation

Explanation of accelerated depreciation for starters and environmental business assets.

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