As an entrepreneur, you can make use of various subsidies and schemes. For example, to make your company more sustainable, to develop innovative products, or to get through a difficult period using a loan or benefit. Usually, you have to pay taxes on benefits, loans, and subsidies.
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Subsidies and your company profit
If you receive a subsidy, it counts as part of your company profits. You pay income tax or corporation tax on this every year. The costs you make and finance with your subsidy can be deducted from your profit.
Paying VAT on a subsidy
You only pay VAT (turnover tax) on your subsidy if you are both liable for tax, and there is a direct link between the compensation and your activities. For example, if you organise an event and receive a fixed subsidy amount per visitor. Read more about subsidies and VAT (in Dutch) at Belastingdienst.nl.
Corona support measures and your income tax or corporate tax return
You do not have to pay tax on the following support schemes:
You declare these support schemes in your income tax or corporate tax return under the categories ‘Vrijgestelde winstbestanddelen’ (Tax-exempt profit components) and ‘Buitengewone baten en lasten’ (Extraordinary income and expenses).
Paying turnover taxes on corona benefits
Taxes on loans and your company profit
Has your business borrowed money? Then you may not deduct your repayments from your company profit. However, you may deduct the interest payments from your profits. This also applies to any application costs for the credit or loan.
Paying VAT on the costs of a loan
The costs of a loan (credit) are exempt from VAT. This includes the interest, any closing commission, and mediation costs.
Taxes on benefits
Every organisation from which you receive a benefit will deduct wage tax from the amount it pays to you. Check your benefit and the wage withholding tax in your pre-completed income tax return.
In addition to a benefit, do you also have profit from business activities? If so, you will have to pay income tax on the profit yourself. Your profit from a business can also mean that you receive less benefit, or that it is ended completely.
Do you have any questions?
For questions about your subsidy, benefit, or loan, please contact the responsible authority. This may be a subsidy provider, implementing body or municipality, bank, or other credit provider.