Article 2:366 DCC: the categories of tangible fixed assets
Article 2:366 of the Dutch Civil Code (DCC) divides tangible fixed assets into five categories and requires a disclosure if you hold only a limited right in an asset, such as a ground lease (erfpacht).
The short answer
Article 2:366 DCC divides tangible fixed assets into business buildings and land, machinery and installations, other fixed business assets, assets under construction with prepayments, and assets that do not serve the production process. If the entity holds only a limited right in rem or a lasting personal right of use in an asset, such as ground lease (erfpacht) or right of superficies (opstal), it discloses that.
Updated 30 October 2026
Key facts
Paragraph 1: five categories
1. The following are recognised separately under tangible fixed assets:
a. business buildings and land;
b. machinery and installations;
c. other fixed business assets, such as technical and administrative equipment;
d. tangible fixed business assets under construction and prepayments on tangible fixed assets;
e. tangible fixed assets not serving the production process.
What this means
- a. Buildings and land that the business uses itself: office, hall, shop, land.
- b. Machinery and installations: production lines, cooling installations, a fixed crane.
- c. Other fixed business assets: equipment, computers, tools, cars.
- d. Under construction and prepaid: a hall under construction, a machine that is already half paid for. What you have only ordered and for which you have not yet paid or built anything is not on the balance sheet; it is a commitment that you disclose in the notes (RJ 212.604).
- e. Not serving the production process: a building that the business no longer uses, or a home for a director far from the business. The concept of the production process is broad: every function in the business operations counts, including spare capacity (RJ 212.602 and 212.603).
Property that you let to third parties as an investment falls under RJ 213 Investment property, with its own measurement and disclosure rules. A rented or leased asset is on the balance sheet only if the lease rules require it (RJ 292; RJ 212.104).
Paragraph 2: ground lease, right of superficies and other limited rights
2. If the legal entity holds, in or in relation to tangible fixed assets, only a limited right in rem or a lasting personal right of use, this is disclosed.
What this means
A building on ground lease land is something different from a building on your own land: when the ground lease ends the land may revert, and the ground rent may rise. The reader needs to know. You therefore disclose for which assets you hold only a limited right in rem (ground lease, right of superficies, usufruct) or a lasting personal right of use. The same disclosure applies to investment property (RJ 213.802a).
Under RJ 212.703, medium-sized and large entities also explain what restricts ownership, what serves as security, how much is already in assets under construction and which investments they have committed to. A small entity discloses the assets that serve as security for debts (art. 2:375(3) DCC; RJk B2.131).
Case: a factory on ground lease land
Vliet Voedingstechniek BV (fictitious, medium-sized) produces sauces. Its factory stands on municipal land under ground lease until 2061. In 2025 it builds a new storage hall and pays a first instalment on a filling machine. The former director's house next to the factory has been empty since 2024 and is being sold.
| Tangible fixed assets 31-12-2025 | Amount |
|---|---|
| Business buildings (on ground lease land) | € 1.850.000 |
| Machinery and installations | € 2.400.000 |
| Other fixed business assets | € 310.000 |
| Under construction and prepaid (hall € 640.000, filling machine € 120.000) | € 760.000 |
| Not serving the production process (former director's house) | € 290.000 |
| Total | € 5.610.000 |
In the notes Vliet discloses that the factory stands on ground lease land, with the term. For the rest of the hall it has signed a construction contract of € 900.000; that amount is not on the balance sheet, but is disclosed in the notes as an investment commitment (art. 2:381 DCC). For the house it states that it is out of use and being sold (RJ 212.707). Had Vliet been small, a single item of tangible fixed assets of € 5.610.000 would have been enough (RJk B2.104).
By size class
| Class | What applies |
|---|---|
| Micro | No breakdown: tangible fixed assets fall within total fixed assets (art. 2:395a(4) DCC). |
| Small | One item of tangible fixed assets; the five categories and the disclosure under paragraph 2 are not mandatory (art. 2:396(3) DCC; RJk B2.104). The assets serving as security must be disclosed, however. |
| Medium-sized | All categories and paragraph 2, with the notes of RJ 212.701 up to and including 212.705; also in the published balance sheet (art. 2:397(5) DCC). |
| Large | As medium-sized, without publication exemptions. |
Common mistakes
- Putting a machine that is ordered but not yet paid for under assets under construction.
- Leaving an empty building among the business buildings when it no longer serves the business operations.
- Not disclosing that the building stands on ground lease land.
- Presenting a building let to third parties as a business building. That is investment property with its own rules.
Sources
Frequently asked questions
What are tangible fixed assets?
Physical assets that the business uses on a lasting basis: buildings and land, machinery and installations, equipment, computers and vehicles, assets under construction and prepayments on them, and property that does not serve the business operations (art. 2:366(1) DCC). Medium-sized and large entities show those five categories separately.
Must I disclose that my building stands on ground lease land?
Yes, if you are medium-sized or large: art. 2:366(2) DCC requires a disclosure if the entity holds only a limited right in rem in a tangible fixed asset, such as ground lease (erfpacht), right of superficies (opstal) or usufruct. A small entity is exempt from this disclosure, but may include it anyway for a true and fair view.
Must a small BV break down its tangible fixed assets?
No. For a small entity, one amount for tangible fixed assets is enough (art. 2:396(3) DCC and RJk B2.104). A micro entity shows only the total of fixed assets.
Is an ordered machine on the balance sheet?
Only once you have paid for it or construction has started. A prepayment or an asset under construction falls under paragraph 1(d). An order without payment is an off-balance-sheet commitment. Medium-sized and large entities disclose the amount (RJ 212.703 and 252.515); a small entity discloses it if it is material (art. 2:381(1) DCC), and RJk B2.132 suggests giving the amount.
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