As a starting entrepreneur in the Netherlands, you may be eligible for the tax relief for new companies (startersaftrek). This is part of the entrepreneur allowance (ondernemersaftrek). You can get this tax relief at most 3 times in your first 5 years as an entrepreneur.
If you make use of this facility, you will pay less tax. This is because you are allowed to deduct a set amount of €2,123 (in Dutch) from your annual gross profit.
When do you qualify?
In order to be eligible for the tax relief for new companies, you must satisfy at least the following conditions:
- You are eligible for the private business ownership allowance (zelfstandigenaftrek).
- In the 5 years prior to the tax year in question, you have not claimed the private business ownership allowance more than twice.
- In the 5 years prior to the tax year in question, you were not a business owner for at least one year.
- In the calendar year or in 1 of the last 5 years there has been no so-called tax-free return from a private limited company (bv). This means that you end your private limited company and immediately continue your business activities as an entrepreneur for income tax (you have changed your business structure), without settlement of (hidden) profits or debts.
Did you reach state pension age on 1 January? Then you are entitled to half of the tax relief for new companies.
Tax relief for new companies in case of occupational disability
Are you starting your own company while receiving incapacity benefit? Then you can request a tax relief for new companies in case of occupational disability (in Dutch). In this case, you must spend at least 800 hours per year on your company.
How to apply?
You apply for the tax relief for new companies by answering the quetsions on this subject on your income tax return.