The Tax Authorities have established various rules that allow you as an entrepreneur to pay less tax. Especially as a starting entrepreneur, this comes in handy. These rules are also known as general tax deductions. We describe two scenarios here to make it as clear as possible.
As a freelancer, you are your own entrepreneur. The Tax Authorities distinguish between two types of entrepreneurs:
You work more than 1,225 hours per year. This is more than 24 hours per week. ‘Profit from business’ (Winst uit onderneming).
You work less than 1,225 hours per year. This is less than 24 hours per week. ‘Income from other work’ (Inkomsten uit overig werk).
This is the hour criterion.
You meet the hour criterion: You work more than 1,225 hours per year. In this case, you have several deductions at your disposal:
Private business ownership allowance (Zelfstandigenaftrek): a fixed deduction of €2,470 (2025) from your profit, which means you pay less tax.
Starters' allowance (Startersaftrek): an additional deduction of €2,123 (2025) for starting entrepreneurs, on top of the private business ownership allowance.
SME profit exemption (MKB-winstvrijstelling): you may deduct 12.7% of your profit before the tax is calculated. The Tax Authorities automatically take this exemption into account.
Tax credits (Heffingskorting): general and labor tax credits further reduce your tax.
You do not meet the hour criterion: You work less than 1,225 hours per year. This is what most freelancers via YoungOnes do. In this case, some deductions do not apply:
Private business ownership allowance: not available.
Starters' allowance: not available.
SME profit exemption: you may deduct 12.7% of your profit before the tax is calculated. The Tax Authorities automatically take this exemption into account.
Tax credits: general and labor tax credits further reduce your tax.
A quick tip: if you do not meet the hour criterion, you might be eligible for the KOR. This will at least help you with your VAT return.
