Tax breaks for new businesses in the Netherlands

Tax breaks for new businesses in the Netherlands

There are several tax benefits, collectively known as the ondernemersaftrek (entrepreneurs’ deduction), that are available in their first years of starting up your business. These can substantially reduce the amount of tax entrepreneurs pay in the first three to five years.

Ondernemersaftrek tax breaks

  • Self-employed deduction (zelfstandigenaftrek)
  • Starters deduction or allowance (startersaftrek)
  • SME profit exemption (MKB-winstvrijstelling)

Other tax breaks 

  • General tax credit (algemene heffingskorting)
  • Labour tax credit (arbeidskorting)

Requirements for new business tax benefits

To be eligible for the ondernemersaftrek you must fulfil certain requirements such as:

  • Demonstrating the independence of your business.
  • Documenting activities (time records).
  • Having three or more clients.
  • Working at least 1.225 hours per year in your business.
  • Having specific labour relationships with clients.
  • Displaying an entrepreneurial risk, such as money and / or time investments.

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