Reconciliation with your bookkeeping
We check whether turnover, costs, balance-sheet items and annual figures reconcile logically with the information used in the return.
Dutch income tax
Dutch income tax returns for entrepreneurs
An entrepreneur’s Dutch income tax return involves more than checking pre-filled information. Business profit, private income, your home, savings and investments, business assets and a possible fiscal partner can all affect the same return. Flicc Finance reviews the relevant components and prepares a substantiated Dutch income tax return.
For sole proprietors, partners in a VOF or maatschap, directors and major shareholders, and entrepreneurs with a fiscal partner.
- Business and private information assessed together
- Attention to deductions and investments
- Clear explanation before filing
The connection
Business and private information in one tax return
For an eenmanszaak (sole proprietorship), business profit is included in the owner’s personal income tax return. In a VOF (general partnership) or maatschap (professional partnership), each partner includes their own share of the profit. Salary, an owner-occupied home, assets, debts, shares and a Dutch fiscal partner may also be relevant.
A BV (private limited company) files its own corporate income tax return. A DGA (director-major shareholder) can also have a personal income tax position involving salary, Box 2 income from a substantial shareholding and private assets in Box 3.
The return must therefore be assessed as a whole: the annual figures form the business basis, while the final income tax position also depends on personal circumstances and the rules for the relevant tax year.
The return
What do we review and prepare?
The precise work depends on your circumstances and the agreed scope. These components form the basis of a carefully prepared Dutch income tax return for an entrepreneur.
Business profit
We assess how the result from your business should be reported in Box 1 and which business adjustments are relevant.
Boxes 1, 2 and 3
We look beyond business profit to other income, a substantial shareholding and private assets where these apply.
Deductions and investments
We check which entrepreneur deductions and investment schemes may fit your circumstances without claiming deductions that lack adequate support.
Fiscal partnership
We assess which joint income and deductible items may be allocated and explain the implications of an allocation.
Draft, explanation and filing
You receive an explanation of the principal components. If filing is within the agreed engagement, we submit the return through the agreed authorisation after your approval.
Types of income
How do Boxes 1, 2 and 3 work?
Dutch income tax divides different types of income and assets across three boxes. Which boxes apply depends on your business and private circumstances.
Box 1 – income from work and home
This can include profit from business, salary, pension, income from other work and an owner-occupied home. For many sole proprietors and partners, business profit is taxed in Box 1. Business expenses, entrepreneur deductions and other tax adjustments can affect taxable income.
Box 2 – income from a substantial shareholding
Box 2 may apply if you, possibly together with your fiscal partner, have a substantial interest in a company. In general, this means holding at least 5%. Examples of Box 2 income include dividends and gains on the sale of shares.
Box 3 – savings and investments
Box 3 concerns private assets such as savings, investments, certain receivables, a second home and relevant debts. The calculation rules can change, and larger or unusual asset positions may require additional attention.
Rates, exemptions and calculation rules can change from one tax year to another. We assess the return against the rules for the relevant filing year.
Tax schemes
Deductions and investment schemes for entrepreneurs
A deduction does not apply automatically because you are registered with the Netherlands Chamber of Commerce KVK. Conditions differ by scheme and tax year. We therefore review both possible eligibility and the supporting evidence required.
Self-employed deduction (zelfstandigenaftrek)
This deduction is intended for people treated as entrepreneurs for Dutch income tax who meet the conditions. These usually include the hours criterion of at least 1,225 hours per calendar year; additional conditions may apply. The deductible amount can change annually.
Starter deduction (startersaftrek)
The startersaftrek increases the zelfstandigenaftrek. You must therefore qualify for the zelfstandigenaftrek and meet the starter conditions. Your history as an entrepreneur and previous use of the deduction are relevant.
Small-scale investment deduction (KIA)
The KIA may apply to investments in qualifying business assets. Annual minimum and maximum thresholds apply, and the deduction depends on total investments. Not every asset qualifies.
Environmental investment deduction (MIA)
The MIA may apply to new assets on the current Environmental List. Investments must be reported to RVO on time, for purchased assets generally within three months after entering into the investment commitment. Vamil may also be relevant.
Energy investment deduction (EIA)
The EIA may apply to new assets on the current Energy List. A timely report to RVO is also required, for purchased assets generally within three months after placing the order or signing the purchase agreement.
SME profit exemption (mkb-winstvrijstelling)
This exemption may apply to entrepreneurs with profit from business. Unlike the zelfstandigenaftrek, it does not require the hours criterion. It is calculated after the entrepreneur allowance has been applied.
Subject to the conditions, the KIA can be combined with the MIA or EIA. The MIA and EIA cannot both be applied to the same business asset.
Filing together
Filing with a fiscal partner
Dutch fiscal partners may allocate certain joint income and deductible items between them. These can include the balance relating to an owner-occupied home, income from a substantial shareholding, the joint Box 3 tax base, donations and certain personal deductions. Every allocation must add up to 100%.
Business profit, salary and many other personal income items cannot be freely transferred between fiscal partners. We therefore assess which items may and may not be allocated and explain the effect of a selected allocation.
If you were fiscal partners for only part of the year, emigrated or separated, additional rules may apply. During the intake, we determine whether your circumstances fall within the agreed service or require additional assessment.
Who is it for?
Which entrepreneurs is this service intended for?
The service is intended for entrepreneurs whose business figures and private tax information come together in a Dutch income tax return.
- Self-employed professionals and sole proprietors
- Partners in a VOF (general partnership)
- Partners in a maatschap (professional partnership)
- Entrepreneurs who also receive employment income
- DGAs (director-major shareholders) and shareholders
- Entrepreneurs with a Dutch fiscal partner
- Entrepreneurs with an owner-occupied home or Box 3 assets
- Entrepreneurs who made business investments during the year
Our process
How we prepare your tax return
We agree in advance which work and returns are within scope. This makes clear what information is needed, which tax choices will be discussed and what you receive before filing.
Introduction and scope
You explain your legal structure, bookkeeping, private circumstances and fiscal partner. We determine which return components and special circumstances are within the engagement.
Documents and annual figures
You provide the agreed bookkeeping records, annual figures and personal information through the secure process. We check whether the information is complete and internally consistent.
Tax assessment
We reconcile the business figures, assess the relevant boxes, deductions, investments and allocation options, and ask for any missing supporting information.
Draft and explanation
You receive the draft and an explanation of the main choices, adjustments and allocations. We process questions or additions before you approve the return.
Filing and follow-up
If filing is included in the engagement, it takes place only after your approval and through the agreed authorisation. We confirm in advance what any follow-up or later amendment covers.
Preparation
What information do we need?
The precise documents depend on your business and private circumstances. During the intake, we prepare a focused information request.
- Bookkeeping records and annual figures
- Information about business investments
- Time records
- Annual income statements
- Mortgage and home information
- Bank, investment and debt information
- Shareholding and dividend information
- Information about your fiscal partner
- Provisional and final tax assessments
- Relevant changes during the year
Related services
From bookkeeping to filing and tax advice
A Dutch income tax return is connected to your bookkeeping and other tax obligations. Explore the support that fits your broader question.
Full-cycle bookkeeping
Outsource ongoing bookkeeping, reconciliations and the year-end close that form the financial basis for your annual income tax filing.
View full-cycle bookkeepingCompliance & filing
Explore broader support with VAT returns, EU sales listings, corporate income tax and possible corrections.
View compliance & filingDutch VAT returns
See how we review VAT records, input VAT and the preparation of a Dutch VAT return.
View VAT return supportTax advisory
Have tax implications and scenarios assessed before making an important decision about structure, profit or investments.
View tax advisoryFrequently asked questions
Frequently asked questions about Dutch income tax for entrepreneurs
When must I file a Dutch income tax return as an entrepreneur?
You must file when the Netherlands Tax Administration invites you to do so. Even without a filing notice, a filing obligation can arise if income tax is due. Whether profit is treated as profit from business depends on whether the Tax Administration regards you as an entrepreneur for income tax purposes. The applicable deadline appears in your filing notice or Mijn Belastingdienst.
What is the difference between VAT and income tax?
VAT is charged on supplied goods and services and is generally reported periodically. Income tax concerns your personal income and assets. For a sole proprietorship or partner, business profit is generally part of the personal income tax return. You can be an entrepreneur for VAT without automatically being an entrepreneur for income tax.
Am I automatically an entrepreneur for income tax because I am registered with KVK?
No. Registration with the Netherlands Chamber of Commerce KVK does not automatically make you an entrepreneur for income tax. The Tax Administration considers factors such as expected profit, independence, time spent, clients and business risk. The outcome affects how income is reported and which entrepreneur schemes may be available.
Can I claim the self-employed deduction and starter deduction?
Only if you are an entrepreneur for income tax and meet the applicable conditions. The hours criterion generally applies to the zelfstandigenaftrek. The startersaftrek increases that deduction and has additional conditions relating to your history as an entrepreneur and previous use. We assess eligibility for the relevant tax year.
Can I combine KIA with MIA or EIA?
Subject to the conditions, KIA can be combined with MIA or EIA. MIA and EIA cannot both be applied to the same business asset. The asset must qualify, and timely reporting to RVO may be required.
Does a DGA also file a personal income tax return?
A BV files its own corporate income tax return. A DGA also has a personal income tax position, which may include salary, dividends or other Box 2 income from a substantial shareholding, and private assets. The relevant components depend on the individual circumstances.
Can you also prepare my fiscal partner’s return?
Please raise this during the introduction. We then determine whether both returns are included in the engagement and which information is needed from your fiscal partner. Joint items may only be allocated under the applicable rules and must add up to 100%.
Can Flicc prepare only my annual income tax return?
During the introduction, tell us whether you only need help with the annual return or also with ongoing bookkeeping. We will then confirm which service and price fit your circumstances.
What does it cost to have my return prepared?
The price depends on the legal structure, quality of the bookkeeping, fiscal partner, number of applicable boxes, investments and other special circumstances. You receive a clear proposal after the intake.
Can an income tax return be amended after filing?
A Dutch income tax return can often still be supplemented or amended. The appropriate route depends on factors including the tax year and whether an assessment has already been issued. Report an error or missing item promptly; we will confirm whether an amendment is within the engagement or agreed follow-up.
No-obligation introduction
Want confidence that your Dutch tax return is complete?
Tell us about your business, bookkeeping and personal tax situation. We will discuss which information is needed and how Flicc Finance can support your return.