Starter Deduction: Who Qualifies and What You Get
New entrepreneurs in the Netherlands can access an extra tax deduction during their first years of business to help with startup costs.
The Starter Deduction is a tax benefit designed to support new business owners in the Netherlands during the early stages of their professional journey. This scheme is intended to provide financial support as you establish your business.
Who it's for
This scheme is specifically for new entrepreneurs who qualify for the self-employed deduction. If you are starting a new business and meet the criteria for being an entrepreneur, you may be eligible for this extra assistance.
What you get
The benefit is an extra tax deduction that you can claim during the initial years of your business. This is intended to provide additional financial relief while you are getting your business operations up and running.
What it costs you
There is no monetary fee to apply for this deduction. However, there is a limit on how often you can use it: you can apply this deduction a maximum of 3 times during your first 5 years of business.
The catch to know
To claim this deduction, you must meet a specific annual hour requirement. You must ensure you are working the necessary amount of hours required by the regulation to remain eligible for the benefit.
How to apply
- Verify that you meet the eligibility criteria for the self-employed deduction.
- Confirm that you meet the required annual hour threshold for your business.
- Check that you have not exceeded the limit of 3 uses within your first 5 years.
- Apply through the official portal of the Belastingdienst.