The self-employed deduction is an important deduction item for you as a self-employed person. This is because this deduction reduces your profits, so you will pay less tax later. In this article, we will explain what it is, what rules apply and how you can benefit from it in 2025.
What is self-employment deduction?
The self-employed deduction is a tax benefit for many self-employed people. Namely, you are allowed to deduct a fixed amount from your profit. That way, you pay less tax. This stimulates self-employment. A nice windfall for those who are self-employed.
Level of self-employed deduction in 2025
In 2025, the self-employed deduction will be €2,470. This amount decreases every year and gets lower and lower.
Conditions for self-employed deduction
Those who want to take advantage of the self-employed deduction must meet a number of conditions:
Entrepreneur for income tax purposes
To qualify for the self-employed deduction, you must be considered an entrepreneur for income tax purposes by the tax authorities. This means that your business must make a profit and that you are self-employed entrepreneurial risk, such as having multiple clients and running financial risk.
Hours criterion
By the hour criterion, we mean that you must spend at least 1,225 hours a year on your business. This includes not only paid assignments, but also time spent on administration, marketing, acquisition and other business activities. In doubt about whether you comply? Keep a record of hours so you can prove how much time you spend on your business.
Minimal profit
You won't get a self-employment deduction if your profits are too low. This is because the deduction only works if you make enough profit to pay tax.
- Are you turning a loss? Then the self-employment deduction has no effect because there is no tax to reduce.
- Are you making little profit? Do you earn less than the amount of the self-employed deduction (€2,470 in 2025)? If so, you may not take full advantage. The deduction reduces your taxable profit, but if it is already low, there is little left to offset.
Phasing out of the self-employed deduction
The government is reducing the self-employed deduction step by step. Below you can see how it is being phased out:
| Year | Self-employment deduction |
| 2024 | €2.970 |
| 2025 | €2.470 |
| 2026 | €1.970 |
| 2027 | €1.470 |
| 2028 | €900 |
| 2029 | €375 |
| 2030 | €0 |
As you can see, the self-employed deduction will be gradually phased out to €0 in 2030. From that year onwards, self-employed people will no longer be entitled to this deduction. So above all, take advantage of it while you can.
How do you apply for self-employment tax credits?
Don't worry, you don't need to apply for the self-employed deduction separately. Fill in your income tax return and it will be automatic. Provided you meet the conditions, of course.
Self-employment deduction and start-up deduction
As a start-up entrepreneur, you can get the start-up deduction in addition to the self-employed deduction. This is an additional tax benefit for new entrepreneurs. It helps you get through the first few years a little easier financially.
Calculation examples:
| Example 1 (without start-up deduction) | Example 2 (with start-up deduction) | |
| Profit | €40.000 | €40.000 |
| Self-employment deduction | €2.470 | €2.470 |
| Start-up deduction | – | €2.123 |
| Taxable profit | €37.530 | €35.407 |
By combining the self-employed deduction and start-up deduction, you pay less tax. This makes for substantial tax savings and you will notice it in your wallet!
Income tax calculation after self-employment deduction
Wondering how much tax you have to pay after the self-employment deduction? Then use our tool now to calculate your income tax: Link to income tax tool.
So make smart use of the self-employed deduction and other deductions to save tax as a self-employed person. Keep an eye on the phasing out of the deduction and make sure you meet the conditions. Only then will you make the most of this scheme.
