Intangible fixed assets: meaning
Non-physical lasting assets such as goodwill, development costs, licences and patents (art. 2:365 DCC). They are capitalised and amortised over their useful life (art. 2:386 DCC).
What do intangible fixed assets mean?
Non-physical lasting assets such as goodwill, development costs, licences and patents (art. 2:365 DCC). They are capitalised and amortised over their useful life (art. 2:386 DCC).
These are identifiable non-physical rights and, in certain cases, development expenditure or goodwill. Recognition requires compliance with specific conditions; research costs are never capitalised (RJk B1.104). Amortisation and disclosure remain important.
How does it work?
The law names five types: formation and issue costs; development costs; concessions, permits and intellectual property; goodwill acquired from third parties; prepayments (art. 2:365(1) DCC). RJ 210 requires that future economic benefits are probable and that the costs can be reliably determined. You capitalise development costs only if the project is technically feasible, you intend and are able to complete it and use or sell it, and the resources for that are available.
For capitalised formation, issue and development costs, the entity holds a statutory reserve equal to the carrying amount (art. 2:365(2) DCC). Formation and issue costs are amortised over at most five years; development costs over the expected useful life, and only if that cannot be reliably estimated over at most ten years (art. 2:386(3) DCC). More at intangible fixed assets.
Example
A software company (BV) builds a planning module in 2026. January to March: exploration and prototypes, € 40.000 of payroll costs. That is research and goes to expenses. From April the conditions are met and the team spends € 120.000 on development. The module goes into use on 1 January 2027 and lasts four years. At the end of 2026 there is an asset of € 120.000 and a statutory reserve of the same size, formed out of other reserves. In 2027 amortisation is € 30.000: asset and reserve fall to € 90.000.
In the annual accounts
Intangible fixed assets on the balance sheet, with legally required notes.
Difference from research costs
Research is searching for new knowledge without it being established what it will yield; development is working that knowledge out into a product or process that you will use or sell. Research costs go directly to the profit and loss account and may not be capitalised later (RJ 210).
Common mistakes
- Booking all internal hours as an intangible asset
- Skipping amortisation
What to watch for
- Without time registration per project, capitalisation cannot be supported.
- Self-developed brands, logos and customer lists do not go on the balance sheet (RJ 210).
- A small entity need only show formation and issue costs separately (art. 2:396(3) DCC); the statutory reserve applies in every size class.
Legal basis and source
art. 2:365 and 2:386(3) and (4) DCC; RJ 210
Frequently asked questions
How long do I amortise software or a licence?
Over the expected useful life, for a licence at most the contract term. A statutory maximum exists only for formation and issue costs (five years) and for development costs and goodwill with an uncertain useful life (ten years).
Why does a statutory reserve go with development costs?
Because it is still uncertain whether the capitalised costs will be recovered. The reserve prevents that amount from leaving the company as dividend. It declines as the asset is amortised.
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Preparing Dutch annual accounts?
Your first set of annual accounts is free, for every size class. Create an account and prepare the annual accounts of your Dutch company under Title 9 of Book 2 of the Dutch Civil Code.
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