Short answer: as an entrepreneur you pay income tax on your profit. If you work at least 1,225 hours a year on your business, in 2026 you get among other things a €1,200 self-employed deduction, and as a starter a €2,123 starter’s deduction. Then the 12.7% SME profit exemption applies. You usually file before 1 May.
The hours criterion
For the entrepreneur’s deductions you must spend at least 1,225 hours a year on your business, and more than half of your working time. If you are a starter (not an entrepreneur in the previous five years), only the 1,225 hours apply. Keep track of your hours, for example in a calendar.
The deductions in 2026
| Deduction | 2026 | Plans for 2027 |
|---|---|---|
| Self-employed deduction (zelfstandigenaftrek) | €1,200 | €900 |
| Starter’s deduction (max. 3 times in the first 5 years) | €2,123 | proposed: €10, abolished in 2028 |
| SME profit exemption (MKB-winstvrijstelling) | 12.7% of profit after entrepreneur’s deductions | — |
The plans for 2027 were presented on Budget Day (Prinsjesdag) 2026 and partly still need parliamentary approval.
Box 1 rates in 2026 (below state pension age)
| Taxable income | Rate |
|---|---|
| up to €38,883 | 35.75% |
| €38,883 to €78,426 | 37.56% |
| above €78,426 | 49.50% |
As an entrepreneur you also pay an income-related health insurance contribution (Zvw): in 2026 4.85% on income up to €79,409.
Deadline and extension
You must file before the date in your filing letter, usually 1 May. If you request an extension before 1 May, you get until 1 September. If we work for you, we arrange it.
Filing without turnover?
You must file if you received a filing letter (invitation) or if you owe tax. Even with little or no turnover, filing is often wise: you avoid fines and sometimes get money back. If in doubt, ask us.
Set money aside
When you are an entrepreneur, nobody withholds tax for you. So set aside part of your profit every month in a savings account, or request a provisional assessment so you pay monthly.
Sources
This article gives general information and is not personal advice. Rules and amounts change; to find out what applies to your situation, get in touch with us.