Self-employed tax deduction

What is the self-employed tax deduction?

The self-employed tax deduction is a facility for entrepreneurs and is a part of the entrepreneurial deduction. This deduction ensures that entrepreneurs can deduct a certain amount from their taxable income. For those in paid employment the tax deduction does not apply. The self-employed tax deduction is one of the deductible posts that a self-employed professional can deduct from the taxable income. This facility can have great consequences for the taxable income.

When can I be considered for the self-employed tax deduction?

To be considered for the tax deduction the following requirements must be met:

- You must meet the requirements for independent entrepreneurship;
- You must have spent at least 1225 hours of work in the benefit of your enterprise;
- You must have spent at least 50% of your available worktime in your enterprise.

What is the maximum amount of the tax deduction?

As of 2012, the deduction is no longer profit-dependent. The fixed amount of self-employed person's deduction is €3,750 in 2024. The amount you can deduct from the profit has been decreasing every year since the change in the law in 2022: In 2025, the deductible amount will be €2,470, in 2026 €1,200 to be reduced to €900 in 2027.

Pay attention!

Are you entitled to a starters deduction in addition to the self-employed tax deduction? Then the self-employed tax deduction can be deducted from the taxable income in full. Starters can therefore settle the excess in the tax deduction with wages from employment or incomes from previous employments. The starters deduction 2013 up to 2015 is €2.123,-.

Pregnant and Independent

For women that are pregnant the fictitious maternity leave exists. This is determined by the leave employees in the same profession are allowed to take. In the time in which you were supposed to have maternity leave to the standards of an equal professional in employment, you are deemed to have continued working in your independent enterprise. The average number of ‘normal’ hours before and after fictitious pregnancy leave is the standard in this case. The actual number of hours worked in the enterprise can be less than the actual 1225 hours, but can become more than 1225 because of this recalculation.

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