SME profit exemption

What is the SME profit exemption?

The SME profit exemption is a tax deduction to your profit. It reduces the amount of your taxable profit. Because of this you will have to pay less taxes. The exemption amounts to 14% of the profit.

The SME profit exemption allows you to deduct the given percentage of your profits (in Dutch), after deduction of the entrepreneur’s allowance (ondernemersaftrek).

SME profit exemption when loss-making

If your company suffers losses, the SME profit exemption diminishes your tax loss. In that case the SME profit exemption can have an negative impact on your company.

When are you eligible?

You are eligible if the Dutch Tax and Customs Administrations (Belastingdienst) considers you an entrepreneur for income tax purposes. If you are not sure you can use the Dutch-language assessment tool OndernemersCheck to find out.

How to apply?

You do not have to apply for the SME profit exemption. The Dutch Tax and Customs Administration will automatically deduct the SME profit exemption from your tax return.