How to stay ahead of the tax authorities in this lucrative pig year?

Moreover, it is already quite late to take measures that will have an effect in 2019. Van der Haar also notes that there are major differences between companies, but also between fattening pig companies and sow farms, due to the high price of piglets. On average, sow farms earn more this year than fattening pig farms. And a high tax profit is in a sense a luxury problem. "Paying more tax for a year is annoying, but for that reason you shouldn't do crazy things."

Can sow farms offset losses from previous years? 
"Indeed. In recent years, fattening pig companies have achieved a much more even but modest result, while sow farmers recorded a peak in 2016 and 2017 and a significant dip again in 2018. In addition to offsetting losses from previous years, investments offer the Environmental Investment Allowance (MIA). ), the Random depreciation of environmental investments (VAMIL) and the Energy Investment Deduction (EIA) are sometimes still possible."

Which investments?
"For example, investments in energy-saving measures and/or sustainable energy, such as LED lighting, heat pumps, heat recovery from air scrubbers and wood pellet stoves. Installation companies are very busy. If it is to have an effect on the taxable profit in 2019, the order must be awarded in 2019 and also be (partially) paid."

"In addition, any subsidy must also be applied for within 3 months after order confirmation. I hardly see pig farmers investing in innovative emission-reducing measures, because there is a lot of mistrust about government policy. Moreover, banks see no point in financing innovative emission-reducing measures. "

If the MIA/VAMIL options have been used, what other options are there?
"Carrying out major maintenance, which is planned for the future. The investments are entered into the tax accounts early. There is a number of overdue maintenance, given the low profitability in recent years. By making a provision for major maintenance, the costs for one or more years, until the moment of actual replacement. This method can also be applied for asbestos removal in the future. It is mainly tailor-made. Coordinate this carefully with your advisor. You can also consider investments in a feeding installation, automation and fire safety, which could have an effect on the taxable profit this year."

And what options are there if a different business form is chosen?
"For this year it is too late to opt for a BV construction with a lower tax rate. Anyone who chooses a BV form will also miss out on self-employed persons' deductions and other tax benefits for small businesses. It is advisable to take this into account. "

And invest in pig rights?
"That does not offer much tax benefit for 2019, due to the short depreciation period in 2019. Who knows, nitrogen rights may be introduced, which can or should be invested in this year. You don't know with this government policy. Pig farmers are really fed up with that. "