1Freelance tax in a nutshell
2From revenue to net profit
- Revenue (excl. VAT)
- €80,000
- Business costs
- − €10,000
- Profit
- €70,000
- Self-employed deduction
- − €1,200
- SME profit exemption (12.7%)
- − €8,738
- Taxable profit
- €60,062
- Income tax after credits
- − €16,585
- Income-related healthcare contribution (Zvw)
- − €3,395
- Net profit
- €50,020
3The entrepreneur deductions
| 2026 | Condition | |
|---|---|---|
| Self-employed deduction (zelfstandigenaftrek) | €1,200 | At least 1,225 hours a year on your business |
| Starters deduction (startersaftrek) | €2,123 | With the hours criterion, at most 3 times in your first 5 years |
| SME profit exemption (mkb-winstvrijstelling) | 12.7% | Of profit after the deductions above; no hours needed |
- 2019Self-employed deduction €7,280
- 2026Self-employed deduction €1,200
The starters deduction is still €2,123.
- 2027 (proposed)Self-employed deduction €900
The starters deduction drops to a token amount.
- 2028 (planned)Starters deduction gone
4The 1,225-hour criterion
5The healthcare contribution you pay yourself
Employers pay an income-related healthcare contribution (Zvw) on top of salary. As a freelancer you pay it yourself, over your taxable profit, through a separate assessment. It comes on top of your health insurance premium. See health insurance for freelancers.
6VAT (btw)
- Standard rate
- 21% on most services; 9% or exempt for some.
- Quarterly return
- Due by the last day of the month after the quarter, also when you owe nothing.
- Small business scheme (KOR)
- Turnover up to €20,000 a year: you can opt out of charging VAT, but cannot reclaim it on costs.
- Set it aside
- The VAT you charge is not yours: keep it on a separate account.
7Saving for your pension
Freelancers build no workplace pension. Annuity premiums within your annual margin (jaarruimte), about 30% of your income above a threshold, are deductible at your full rate. See pensions and retirement saving and the jaarruimte calculator.
8Paying tax during the year
- 1Estimate your profit
At the start of the year.
- 2Ask for a provisional assessment
And pay monthly. See the provisional assessment.
- 3Update it when income changes
Avoid a big bill and tax interest later.
- 4File your return
9Common questions
Do I get the labour tax credit?
Yes, on your profit, like an employee on salary.
Do I need a BV?
Usually not until profits are high. See Box 2 and your own BV.
Is freelancing cheaper in tax than employment?
Often a bit, but you pay your own insurance, pension and time off. See freelancer vs employee.
What rate should I charge?
Work it out with the freelance rate calculator.
Sources
This article is based on these official pages. If anything here differs from them, the official page is right.
- Ondernemersaftrek (in Dutch)
- Zelfstandigenaftrek (in Dutch)
- Urencriterium (in Dutch)
- Kan ik gebruikmaken van de kleineondernemersregeling (KOR)? (in Dutch)
Ready to run your own numbers?
Freelancer tax calculator