Self-employed tax deduction: Who Qualifies and What You Get
Learn how freelancers in the Netherlands can reduce their taxable profit through this specific annual tax deduction.
This scheme allows freelancers to reduce the amount of their business profit that is subject to income tax.
Who it's for
To qualify, you must work as a freelancer and spend a minimum number of hours on your business activities each year.
What you get
You receive a fixed annual deduction that is subtracted from your taxable profit. This lowers the total amount of income you are taxed on, which can result in a lower tax bill.
What it costs you
While there is no direct monetary fee to access this deduction, it requires a significant investment of your time. You must maintain meticulous logs and records of your working hours to prove you meet the requirements to the tax authorities.
The catch to know
This deduction is not permanent; it is currently being phased out gradually until 2027.
How to apply
- Keep a detailed log of all your business-related hours throughout the year.
- Calculate your total business profit for the tax year.
- Report your hours and profit when filing your annual tax return.
- Visit the official portal for more details: https://www.belastingdienst.nl