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Private business ownership allowance

This information is provided by

Netherlands Enterprise Agency, RVO

As an entrepreneur in the Netherlands, you may be eligible for the private business ownership allowance (zelfstandigenaftrek,in Dutch). If so, you pay less tax because you can deduct a fixed amount from your annual gross profit. The private business ownership allowance is an important tax deduction for sole proprietors.

When do you qualify?

  • You are an income-tax-paying business owner. The Dutch Tax and Customs Administration (Belastingdienst) also offers the Dutch-language tool OndernemersCheck with which you can check if you are an entrepreneur for income tax
  • You meet the hours criterion.
  • You have not reached the state pension age at the beginning of the calendar year. If you have reached the state pension age, the private business ownership allowance will be reduced by 50%.

Amount of the allowance

You can find the amount you may deduct on the Dutch Tax and Customs Administration's website. Check the amounts for 2019, 2020, and 2021 (all in Dutch).

Corona crisis: relaxation of hours criterion

As a result of the corona crisis you may not have been be able to meet the hours criterion to be eligible for the private business ownership allowance (zelfstandigenaftrek). Therefore the Dutch Tax and Customs Administration has relaxed the hours criterion for the period up to and including 30 June 2021. This means that for your income tax return for the period 1 January 2021 through 30 June 2021, you can presuppose that you worked for at least 24 hours per week in your business. For July 2021 through December 2021 you must meet the hours criterion.

Read more on the relaxation of the hours criterion (Versoepeling urencriterium, in Dutch).

Unrealised private business ownership allowance

Is your profit less than the private business ownership allowance? Then the private business ownership allowance is the same amount as your profit. The part you cannot deduct is the unrealised private business ownership allowance (in Dutch). The Dutch Tax and Customs Administration will offset this part in the subsequent 9 years.

How to apply?

You state the private business ownership allowance in your income tax return. Check the amount you are allowed to deduct with the Dutch Tax and Customs Administration (in Dutch)

This article is related to:

This information is provided by

Netherlands Enterprise Agency, RVO