Income tax ZZP

As an entrepreneur, you have to deal with income tax. A vague concept that not everyone knows exactly what it is. Many self-employed people see it as boring, complicated and sometimes even stressful. But no worries: that headache is unnecessary. We explain everything to you in a way that makes you understand it (better). Need help? We'd love to help! Income tax ZZP can seem complicated, but with our explanation, it gets a lot easier!

What is income tax?

Income tax is the tax you pay on the money you earn as an entrepreneur. Nothing more, nothing less. As a self-employed person, you do not pay this tax on your total turnover, but only on your profit. Your profit is your turnover minus all your business expenses and deductions. Profit falls under box 1: taxable income from work and home.

How does the tax rate work?

In the Netherlands, we have a progressive tax system. But what does that mean? Long story short: the more you earn, the more tax you pay. Sounds logical right? In the Netherlands, the following rates apply. These fall under so-called brackets.

• Disc 1: Do you earn up to €73,031 a year in sales? Then you pay 36.93% on that.
• Disc 2: Everything above that? You pay 49.50% on that.

And that means you don't immediately pay the top price if you earn more. You only pay on the part that falls in the higher bracket. Nice, right?

And the boxes, how about that exactly?

By boxes, we mean the tax boxes. In the Netherlands, we deal with three boxes:

1. Box 1: This is income from work and home (such as your profit as a self-employed person).
2. Box 2: The income from shares (e.g. when you have shares in a PLC).
3. Box 3: Income from savings and investments (think of your savings or a holiday home).

Most self-employed people often only have to deal with Box 1.

When do you have to pay income tax as a self-employed person?

Are you making a profit? Then you have to pay for it (well, there's a good chance of that).

Once you make a profit, chances are you will have to pay on it. But how can you be so sure? We like to list the most important situations:

1. You make a profit as an entrepreneur: If your business makes a profit, you are taxable.
2. You combine self-employment with salaried employment: Do you work part-time in employment alongside your business? Then these earnings are added together.
3. Other income: For example, do you have a side income, such as renting out a room or doing freelance jobs? This also counts.

Beginning entrepreneurs beware!

As a starting entrepreneur, you benefit from deductions such as the self-employed deduction and start-up deduction. These beginner's benefits make you pay less tax or sometimes even nothing at all. But be careful: you are always obliged to file tax returns. Even if you think you don't have to pay anything. So better keep track of everything!

How to file your income tax return as a self-employed person

Follow our roadmap and you'll get through it like a speeding train.

1. Login to the Tax Office.
   Use your DigiD to access the Inland Revenue's online declaration system.
2. Make sure your records are up-2-date
   So arrange an overview of your income, expenses, business costs and investments. Really important!
3. Fill in everything
   The Inland Revenue asks for all your turnover, expenses, deductions and other income. Make sure you fill everything in accurately. You don't want to get a hassle with that.
4. Check all your deductions
   And so don't forget to make use of deductions such as the self-employment deduction and start-up deduction. That can save you a lot of money.
5. Submit
   Check that everything is correct and click 'send'. Simple as that!

When should you file your income tax return?

The deadline for your annual return is 31 March of the year following the tax year. So for the year 2024, that's 31 March 2025. Do you miss that deadline? Then you risk a fine from the Inland Revenue. And believe me, you really don't want that fine.

Requesting a postponement

And don't have time to file your tax return on time? No stress, because you can postponement applications via the My Tax Office portal. That gives you some extra time. Usually you then have until September 1 to get everything in order. But be sharp: delaying filing your tax return does not mean you can also automatically pay later.

The Inland Revenue expects you to still pay the amount you eventually owe on time. Do you fail to do so because you forgot? Then the Tax Authorities may charge you interest. We call this tax interest. This interest can be hefty, you should not want. From 1 July, the Tax Administration charges interest on the amount you still have to pay. This rate is currently at 4% for income tax. A real waste of all that cash, right?

And how do you avoid tax interest?

Do you already know you will have to pay more tax? Then you can apply for a provisional assessment. That way, you pay part of your tax in advance. This allows you to skip the tax interest. Very smart to do if you expect your profit to be higher this year than last.

Tip for the pros: Want to be 100% sure you won't pay tax interest? Then get help from a master accountant like us. We will help you get everything right on time. This will save you unnecessary costs.

How do you know how much income tax you have to pay?

The Inland Revenue calculates your income tax based on:

1. Company profits: So that's your turnover minus business expenses.
2. Deductions: Like the self-employment deduction and SME profit exemption.
3. Tax rates: So check again the discs we talked about earlier.
4. Tax credits: Think of the general tax credit and employment tax credit.

It's a calculation we know. But no stress. You can do this yourself with an online tool, or let your accountant (that's us!) do the work.

Income tax deductions for self-employed persons

Deductions are the way to cleverly save tax and therefore money. Check out these essentials for self-employed people:

• Self-employment deduction: For 2024, this is €3,750. Nice amount that can be deducted directly from your profits.
• Start-up deduction: Just started doing business? Then you get an extra deduction of €2,123. More start-up perks!
• SME profit exemption: 14% of your profit you may deduct. But only after the other deductions!
• Small-scale investment deduction (KIA): Are you investing in tools such as a new laptop? This scheme is there for small investments. Use them all and keep that money!

So make use of these deductions and pay less tax. Why the hell not?

Income tax calculation

Wondering how much income tax you have to pay as a self-employed person? Use our handy tool to calculate this quickly and easily. That way you know exactly where you stand!