Entrepreneur deductions
There are specific deductions available for entrepreneurs, such as the self-employed deduction and the starter deduction. These reduce your taxable income, meaning you pay less income tax.
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Income tax return
Unlike the VAT return, the income tax return is mandatory for every individual. As an entrepreneur within a sole proprietorship, VOF, or as a freelancer, your business profit is taxed as personal income. This means you must pay income tax on the profit you have earned.
Fiscal partner
In the Netherlands it is possible to file a combined income tax return with your fiscal partner. We are happy to review whether this would be more beneficial in your case.
Income tax rates
In the Netherlands there are different tax brackets with different rates for income tax. The higher your income, the higher the percentage of tax you pay. Together we make sure you do not pay more than necessary.
Income tax as an entrepreneur: how does it work?
As a sole trader, freelancer or partnership you pay income tax on your profit. That profit is added to your other income and taxed in box 1, the higher your income, the higher the rate. Unlike employees, no tax is withheld on your earnings, which means you are responsible for reserving and paying your own tax. TaxMate monitors this for you, advises on reservations and ensures your return is always correct and filed on time.
Tax brackets and rates in 2025
In the Netherlands, box 1 has two tax brackets. Up to approximately €38,000 per year you pay 36.97%; above this the rate is 49.50%. As an entrepreneur you do not pay on your full turnover but on your taxable profit, after deducting business costs, entrepreneur deductions and the SME profit exemption. By applying all these deductions correctly, TaxMate ensures you never pay more tax than necessary.
Deductions that save you money as an entrepreneur
Entrepreneurs are entitled to specific deductions unavailable to employees. The self-employed deduction (€3,750 in 2025) and the SME profit exemption (13.31%) together significantly reduce your taxable income. Starting entrepreneurs also benefit from the starter's deduction. For business investments above €2,800 the small business investment deduction (KIA) applies. TaxMate checks each year which deductions apply to you and applies them all correctly.
Avoid surprises: reserve in time for your tax assessment
One of the most underestimated risks as an entrepreneur is failing to reserve for income tax. You receive no net salary, all incoming revenue is gross. When the Tax Authority assessment arrives, sometimes eighteen months later, you must pay the full amount at once. TaxMate calculates your expected tax liability throughout the year and advises on a realistic monthly reservation, so you are never caught off guard.
Making the most of fiscal partnership
Do you have a fiscal partner? Then you can distribute certain income, deductions and assets between you in the way that produces the lowest combined tax amount. This applies to mortgage interest deductions, the imputed rental income and savings in box 3. TaxMate automatically determines the most advantageous split in your situation and processes it correctly in both your returns.
Why outsource your income tax to TaxMate?
The income tax return for entrepreneurs is considerably more complex than for employees. There are more deductions, more decision points and more scope for errors that cost you money or trigger an additional assessment. TaxMate combines personal guidance with smart software: we handle your return, maximise all deductions and check everything before filing. You receive a clear overview of the result and expected assessment, without surprises.
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Maximum tax benefit for you as an entrepreneur.
From the self-employed deduction to the SME profit exemption: we know every fiscal benefit available and ensure you never pay more than necessary.
- All tax returns filed on time
- Dedicated point of contact
- Insight via MyTaxMate dashboard
- No hidden costs
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