SME profit exemption
This information is provided by: Netherlands Enterprise Agency
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The SME profit exemption allows you to deduct a given percentage (Dutch) of your profits, after deduction of the entrepreneur’s allowance (ondernemersaftrek).
When are you eligible?
You are eligible if the Dutch Tax and Customs Administrations considers you an entrepreneur for income tax purposes. You are no longer required to spend at least 1225 hours on your business in order to qualify for the SME profit exemption.
How to apply?
You do not have to apply for the SME profit exemption. The Dutch Tax and Customs Administration will automatically deduct the profit exemption from your tax return.