What is the hours criterion?
The hours criterion is a condition for certain entrepreneurial deductions. You must spend a minimum of 1,225 hours on your business or businesses in a calendar year. In addition, a second time requirement may apply. It does not determine in itself whether you are an entrepreneur for income tax purposes: you can be an entrepreneur without meeting this hours threshold.
Self-employment deduction
If you meet the conditions and have not yet reached the state pension age at the beginning of 2026, the self-employed deduction is €1,200. This reduces the profit on which you calculate tax; it is not a €1,200 payment. Other conditions apply in addition to the hours requirement.
Start-up deduction
The usual start-up deduction increases the self-employed deduction under certain conditions by €2,123. You must be entitled to the self-employed deduction, not have been an entrepreneur in at least one of the five preceding years, and have applied the self-employed deduction a maximum of twice in those five years. Also check the other conditions.
Conditions of the hours criterion
Spend at least 1,225 hours per calendar year on your business(es), and more time on that than on other activities, such as employment. The second requirement is waived if you were not an entrepreneur in at least one of the five preceding calendar years. If you start later in the year, the 1,225 hours are not reduced pro rata. See the official conditions of the hours criterion.
Which hours count?
Not only the hours you work directly for clients, but also all the time you invest in your business counts. Think of administration, travel time to assignments, marketing, training or keeping your website up to date. Actual preparation hours prior to your Chamber of Commerce registration can also count, within the same calendar year. Hours from previous years cannot be carried forward. Everything that demonstrably contributes to your enterprise therefore helps to reach the threshold of 1,225 hours.
What doesn't count?
You may not count hours when you are only available without working, holidays or sick hours. Even work in an unusual partnership with your partner may not count in full.
Registering hours
Reliable time tracking is crucial to substantiate the hours criterion. You can easily keep track of this in an Excel spreadsheet, accounting software or a special time-tracking app. It is important that you always note the date, activity and number of hours. Supporting evidence, such as calendars, invoices, quotations or emails, strengthens your records. Keep the supporting documentation with your hours. View the practical example for time registration.
Dutch Tax and Customs Administration audit
The Dutch Tax and Customs Administration relies primarily on your own declaration. Nevertheless, there may be an audit. Then you must be able to prove that your hours are realistic given your turnover and activities. Good administration is indispensable for this.
Penalty hours criterion
If you do not meet the hour criterion or cannot prove this in an audit, you will lose the right to the self-employed deduction (and possibly also the start-up deduction). This means that you have to pay more income tax, as your tax benefit is lost.
There is usually no separate fine, but the Dutch Tax and Customs Administration can correct your assessment retrospectively. This often leads to a retrospective tax assessment, plus possibly interest or a penalty for non-compliance if it turns out that you deliberately provided incorrect data.
Hours criterion in case of incapacity for work
The reduced criterion of 800 hours belongs to the special starter's deduction for occupational disability. It does not provide an independent right to the regular self-employed person's deduction. Additional conditions apply, including entrepreneurship for income tax purposes, a qualifying benefit and starter conditions. Check the start-up deduction for occupational disability.
Maternity leave
If you interrupt your work as an entrepreneur due to pregnancy, the non-worked hours for a total of sixteen weeks will still count. This is a specific exception to the counting of actually worked hours.
Hours criterion not met?
Then the regular self-employed deduction and starter's deduction will lapse. If you are an entrepreneur for income tax purposes, the SME profit exemption may apply; it has no hours criterion. Business expenses and other schemes also have their own conditions.
Started as self-employed later in the year?
Even with a start in July, the limit remains 1,225 hours: approximately 47 hours per week in the remaining 26 weeks. Choose the start date based on when you actually do business and what is feasible. Do not postpone a mandatory registration or promising assignment solely for the sake of deduction. Record actual preparation hours in the same calendar year.
Hours criterion met? Example application
Example 2026: €50,000 turnover − €10,000 costs = €40,000 profit. At the start of the year, you have not yet reached state pension age and meet all the conditions for the self-employed person’s allowance and the start-up allowance. After deductions of €1,200 and €2,123, the remaining amount is €36,677. The SME profit exemption is 12.7% of this amount: €4,657.98. The taxable profit is, rounded, €32,019. This is not the tax due. Other income, personal allowances, tax credits and the Health Insurance Act (Zvw) contributions are calculated separately. See the deduction rules for 2026.
Do you combine freelance work with employment? Include both incomes in your calculation. Our income tax calculator gives an indication.
Overview: hours criterion, self-employment deduction & start-up deduction
- First, assess whether you are an entrepreneur for income tax purposes.
- Check 1,225 hours and, where applicable, more time in the business than in other activities.
- Check the other conditions for the self-employed person's deduction afterwards.
- Check the five preceding calendar years for the start-up deduction as well.
Simply working enough hours therefore does not automatically grant entitlement to every deduction. Without the standard hours criterion, business expenses and the SME profit exemption may still apply under their own conditions.
Hours criterion: self-employed alongside salaried employment
Also in addition to employment, a minimum of 1,225 entrepreneur hours per calendar year applies. If you were not an entrepreneur in at least one of the five preceding years, the second time requirement lapses. Otherwise, you must spend more time on your business than on your other activities.
Example: if you work 1,300 hours as an employee and you have no other activities, without that exception you would have to work more than 1,300 entrepreneurial hours. With the exception, 1,225 hours remains the threshold. Register the hours of both activities separately.
Frequently Asked Questions
How is the hours criterion monitored?
The Dutch Tax and Customs Administration randomly checks whether your hours are plausible. You must substantiate this with time records and supporting documents.
What if you don't reach the 1,225 hours?
Then the regular self-employed deduction and start-up deduction will lapse. If you are an entrepreneur for income tax purposes, the SME profit exemption may still apply. Business expenses and other schemes have their own conditions. In the event of incapacity for work, a separate start-up scheme may apply.
What does it mean for the hours criterion if I am also in the KOR?
The KOR is separate from the hours criterion. The KOR has a turnover limit of a maximum of €20,000 and additional conditions. Participation does not change the hours assessment for income tax.
How strict is the hours criterion?
The limit is hard: 1,225 hours or more. When audited, you must be able to prove this plausibly. Without proof, you lose your deductions and the Dutch Tax and Customs Administration can impose corrections
