Afkapwaarde

Afkapwaarde is a Dutch accounting and tax term that refers to the residual or cap value of an asset after a certain period of use or depreciation. It is mainly used in the context of Dutch capital allowances (bijtwin) and depreciation schedules for tax purposes. The afkapwaarde represents the minimum value that an asset must reach for the tax authorities to allow a particular depreciation deduction. Certain assets can only be depreciated up to a percentage of their original cost net of a reserve amount called the afkapwaarde.

In practice, the afkapwaarde is calculated by subtracting a fixed percentage – typically 18 % or 22 % of the asset’s original cost, depending on the taxation year – from the original cost. The remaining amount is the afkapwaarde. This figure is treated as a threshold: any depreciation claimed must leave the book value above this threshold. Once the book value falls to the afkapwaarde, the asset may be written off, or a different depreciation method may apply.

The concept plays a role in determining the timing and amount of tax deductions for businesses. By incorporating the afkapwaarde, the Dutch tax system encourages the replacement of ageing assets while preventing indefinite write‑off of depreciated assets. Entrepreneurs and accountants must carefully model the afkapwaarde within financial statements to ensure compliance with Dutch tax regulations.