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SME profit exemption reduced to 12.7%

This information is provided by:Netherlands Enterprise Agency, RVONetherlands Enterprise Agency, RVONederlandse versiePrinsjesdag suitcaseThis is a Prinsjesdag articleSee more expected changesEffective date: 1 January 2024

What changes?

The SME profit exemption for small and medium-sized enterprises will be reduced in 2024. Are you self-employed or an SME entrepreneur? And are you an entrepreneur for income tax purposes? Then you will pay more tax on the profits you make in 2024. You may deduct 12.7% SME profit exemption from your profits on your income tax return. Before, this was 14%.

For whom?

  • Self-employed individuals and SME entrepreneurs who pay income tax, and therefore have a legal form without a legal personality (such as a sole proprietorship, vof, or partnership).


The change in law is expected to enter into effect on 1 January 2024.

Please note: The effective date of this measure is not yet final. Entry into force is subject to its passing through the Upper and Lower Houses (Eerste en Tweede Kamer) of parliament or proclamation of the Order in Council (Algemene Maatregel van Bestuur, AMvB) or ministerial decree and publication in the Staatsblad or Staatscourant (Government Gazette, in Dutch).

Prinsjesdag suitcasePrinsjesdag 2023See all expected changes for entrepreneurs in 2024

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