SME profit exemption reduced to 12.7% in 2025

What has changed?

Are you a self-employed professional (zzp’er) or SME entrepreneur? And are you an entrepreneur for income tax purposes? The SME profit exemption (mkb-winstvrijstelling) for small and medium-sized companies goes down in 2025. In 2025 you can deduct 12.70% from your profit through the SME profit exemption, in other words your taxable profits will be lower. In 2024 this was 13.31%. This means in 2025 you pay more taxes on your profits.

For whom?

• Self-employed professionals and SME entrepreneurs who pay income tax, and thus have a legal form without legal personality, for example a sole proprietorship, general partnership (vof), or partnership.

When?

This change in law has taken effect on 1 January 2025.