Tax facilities for the Self employed
Fiscal Provisions In the Netherlands, entrepreneurs who meet certain requirements are subject to some fiscal provisions. Zelfstandigenaftrek & Startersaftrek The requirements for the zelfstandigenaftrek & startersaftrek are:
•you are an entrepreneur according to the Dutch tax law;
•you spend at least 1225 hours a year in favor of your business. After five years working there is an extra requirement, which states:
•you must devote most of your working time in favor of your business. So, if you have your own business which takes about 1300 hours a year of your time, but you work 1400 hours a year as an employee as well, you do not meet the requirements for the zelfstandigenaftrek.
The startersaftrek has its own requirement as well, which is:
•your business does not exist for more than five years and you have not used your startersaftrek three times or more. If you got startersaftrek you have to pay about € 1000 less than without this facility.
The zelfstandigenaftrek lowers your income tax with an amount between 2000,- EUR and 3700,- EUR. Kleinschaligheidsinvesteringsaftrek (KIR) When you invest more than 2.300,- EUR but no more than 301.800,- EUR per year, you will receive an extra tax subsidy, it is a percentage of investment and starts with 28% and becomes lower when investment is higher. Every investment above 450,- EUR excluding VAT counts as an investment. Kleine ondernemersregeling (KOR) This provision applies to entrepreneurs who have to pay an amount of VAT between 0,- EUR and 1883,- EUR. The facility makes sure that small entrepreneurs have to pay lower VAT amounts. When the amount of VAT you have to pay is less than 1345,- EUR, you have to pay no VAT at all!