Hours criterion 2025 - what counts, how do you prove it and what does it deliver?

Are you self-employed or an entrepreneur? Then chances are very good that the hours criterion applies to you. It may sound stuffy, but it is precisely your ticket to tax benefits. Think of the self-employed deduction and start-up deduction. But what exactly is the hour criterion? And how many hours must you work? What counts? And then how do you prove all this? We explain it to you step by step.

What is the hours criterion?

The hour criterion is a game rule of the Tax Office. As an entrepreneur, do you spend at least 1,225 hours a year on your business? Then you are eligible for nice benefits. These include benefits such as the self-employed deduction, start-up deduction and sometimes the SME profit exemption. The idea behind it is simple. Reward entrepreneurship (but only if you really work at it).

When does it apply to you?

To avail of certain entrepreneurial deductions, you do need to belong to the target group. In the following cases, the criterion applies to you:

• Self-employed with profits from your business? Then you just belong!
• Do you have a sole proprietorship, vof or partnership? Then you belong too.
• Starter or in business for years? Doesn't matter, it applies to both.
  And do you also work in salaried employment? Then you do have to make more hours for your business than for your employer.

How many hours should you make and which ones count?

The number doesn't lie: as an entrepreneur or self-employed person, you have to at least 1,225 hours per year put into your business.

Direct and indirect hours

Direct hours are the hours you put on your invoice. Think of performing assignments for your clients. But also indirect hours count as hours. Here are some examples of indirect hours:

• Keeping your records
• Doing marketing
• Conversations with customers
• Networking drinks (yes, really)
• Building your website
• Creating quotes

And what doesn't count?

Some activities may look like work time, but are not recognised by the Tax Office as business hours. These are the main exceptions:

• Travel time from home to your regular workplace (unless of course you are driving to a client)
• Just being available without really doing anything, such as on-call duty without action

An example

You work 10 hours on an assignment for a client, of which 3 hours are spent on your administration and 2 hours of which you then sit at a networking reception. Then we have good news: all these 15 hours you can count.

How do you prove you meet the hours criterion?

So you have to be able to show that you actually made those 1,225 hours. The Inland Revenue does not necessarily need minute-to-minute proof. But they do want it to be credible.

Time recording & tools

You can easily track your hours in an Excel sheet, your diary or a handy tool such as MoneyMonk. This tool automatically logs everything for you.

Smart tips

• Keep track of your hours and write them down daily or weekly
• Be specific. So don't just write "administration", but also, for example, "VAT return Q1 2025".
• Also keep your invoices, quotations and appointments in your diary

Hours criterion and other deductions 

No hours criterion means missing out on a number of other deductions. And this is where you, as an entrepreneur, can just miss out on thousands of euros.

These benefits are linked to the hours criterion:

• Self-employment deduction: the fixed tax credit for entrepreneurs
• Start-up deduction: an extra advantage in the first three years of your business life
• SME profit exemption: you get this exemption anyway, but it works out even better if you meet the hour criterion

Note: Are you already halfway through the year and haven't tracked anything yet? No problem. You can note everything retrospectively.

How does the Inland Revenue check the hours criterion?

Not everyone gets an audit by the tax authorities. But áf it happens, you must be able to properly substantiate your hours. The tax authorities pay attention to the following points:

• Your time recording
• Calendars, invoices and notes
• Whether it sounds logical (if you claim 70 hours a week, it must be credible)

So make sure you keep track of your hours and everything is neatly recorded. That way, you will be prepared for a possible audit and benefit from tax advantages. Do you have doubts? Consult an expert. Because it is better to be well organised than to get into trouble afterwards.

Frequently Asked Questions