If you run a business as a sole proprietor or partner in a general partnership (vof) in the Netherlands, you pay income tax over your taxable earnings. You must file your income tax return digitally with the Dutch Tax and Customs Administration before 1 May of each year.
Do you have to file an income tax return?
If you are an entrepreneur who is registered as a sole proprietor or partner in a general partnership, you are liable for paying income tax. That is, if the Dutch Tax and Customs Administration considers you to be an entrepreneur. Private and public limited companies, as well as some foundations and associations, have to pay corporate income tax (VPB).
What if you do not reside in the Netherlands?
If you are registered with the Chamber of Commerce, either as a resident business or a business with a branch in the Netherlands, you will receive a declaration letter to file for income tax. Generally speaking, the rule is that if you receive income from the Netherlands, you are liable to pay income tax, even if you do not reside in the Netherlands. However, if your business is not in the Netherlands, but you have employees working temporarily in the Netherlands, you are normally not liable for paying income tax in the Netherlands. If you are a self-employed professional working on an assignment in the Netherlands, you may have to file an income tax return, depending on several circumstances. Contact the Tax Administration to find out if you have to file or not. If you are a non-resident taxpayer, you are required to file a tax return in the Netherlands if:
- you have received an invitation to file a return
- you have not received an invitation to file a tax return, but you earned income in or from the Netherlands over which you owe more than € 45.
File your tax return online before 1 MayYou have to file your income tax return digitally. You can find the form in the encrypted environment of the website, Mijn Belastingdienst (only in Dutch), from 1 March. File your return before 1 May. You can file your tax return yourself, using tax return or financial administration software, or via a tax intermediary. Either way, you need a DigiD to verify your identity.
Check income tax deductions and fiscal arrangements
You pay income tax over your taxable earnings. That is to say, your income minus deductible items and fiscal allowances, like refurbishment costs made to the office and asset depreciations.
When filing your return, you may make use of several deductibles and fiscal arrangements. This will lower your profit and the amount of income tax you have to pay. The entrepreneur allowance, for instance, consists of a number of such deductibles. See also: