As a freelancer, you have a bit more work to do for the income tax return than an employee: you have to prepare an annual statement and can make use of various tax deductions. But what does the process look like? And how can you be sure you’re not paying too much tax? In this blog, we explain it to you. Are you already thinking: “I’d rather have Kees de Boekhouder handle that tax return?” Schedule an introductory meeting ! We are happy to have a look at the options with you, even right before the deadline.
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In the income tax return you declare (what’s in a name?) all your income from the past calendar year. That income can come from various sources. It is divided into three boxes:
Box 1: income from work and home. This includes all income from your current and former employment (read: pension, or benefits). An owned home that you live in yourself (the owner-occupied home) also falls in Box 1.
Box 2: income from a substantial interest. You have a substantial interest if you own more than 5% of the shares of a company (for example, the shares within your own BV). The income from this substantial interest is taxed in Box 2.
Box 3: income from savings and investments. Your private wealth falls into this box. Think of your savings, investments, or your holiday home. The income from this wealth is only taxed if it exceeds the tax-free limit.
The boxes work like this: you first check whether a certain source of income falls into Box 1. If that is not the case, you check if it falls into Box 2. If it doesn’t belong there either, it eventually falls into Box 3.
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As an entrepreneur, you do not pay income tax throughout the year (unlike when you’re an employee): you only do this at the end of the year, via the income tax return. How you do this depends on whether you are an entrepreneur for income tax purposes or not. You may also be entitled to various tax deductions.
Entrepreneur deductions and SME profit exemption
Are you an entrepreneur for income tax purposes? Then you’re entitled to the SME profit exemption. This is a deduction where you do not have to pay tax on a certain percentage of your profit. In 2025, the SME profit exemption was 12.7%: meaning this 12.7% of your profit is not taxed.
Additionally, as a freelancer, if you meet the hours criterion (spending 1,225 hours a year on your business), you’re entitled to the private business ownership allowance. Did you start in the past 5 years? Then you might also be entitled to the tax-deductible allowance for new entrepreneurs. These deductions are fixed amounts that you can deduct from your profit.
In addition to the SME profit exemption, private business ownership allowance, and starter’s allowance, there are more deductions you might be able to apply as a freelancer. This blog lists them all for you.
Pension and Mandatory occupational disability insurance (AOV)
As a freelancer (zzp’er), you are responsible for arranging your own pension. Pension contributions are tax-deductible in Box 1: you only pay income tax once you receive the payouts after reaching retirement age. Additionally, premiums paid for disability insurance (AOV) are also deductible from your Box 1 income.
Personal deductions
Besides the various entrepreneur deductions, there’s also the personal deduction, which applies to everyone.
The personal deduction is a tax deduction in the income tax return where you can deduct certain expenses (such as healthcare costs, partner alimony, and donations) from your income, because they’re personally related to you.
The personal deduction cuts across all boxes: in principle, the deduction is first applied in Box 1, if that’s not possible in Box 3, and finally in Box 2.
The deductions are subtracted from your taxable income, over which the tax is subsequently calculated.
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After the income per box has been calculated and the various deductions have been subtracted where possible, a taxable income remains per box. A percentage of tax is calculated over that taxable income, which differs per box:
In addition, you pay national insurance contributions over your Box 1 income: these consist of premiums for the Dutch basic state pension (AOW), National Survivor Benefits Act (ANW), and Long-Term Care Act (WLZ). The current rates can be found on this page of the Tax Administration. this page.
Tax credits
Based on your taxable income per box, a certain percentage of tax is levied. You receive a discount on that tax to be paid: the tax credits. This discount is automatically applied to the total amount of tax to be paid across all boxes.
Tax credits are income-dependent. They fluctuate along with your taxable income. A tax credit can become higher or actually lower when your income grows. Some credits are even phased out to €0, meaning that with a certain income, you no longer receive the relevant credit.
There are a total of seven types of tax credits*, but these three are the most common:
if you’d like to know more about all tax credits, the Tax Administration has listed them here.
Health Care Insurance Act contribution
Besides income tax, you pay, dependent on the income tax return, the Health Care Insurance Act contribution (zvw contribution). The Dutch healthcare system is financed in two ways: your health insurance and the zvw contribution. If you are employed, you pay this through your employer. As an entrepreneur, you have to pay this contribution yourself. This contribution is automatically calculated during your tax return over your income from Box 1, with the exception of the owner-occupied home. No tax credits or deductions apply to the zvw contribution.
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Now that we’ve discussed all the separate parts of the income tax return, we summarize the steps of the tax return here:
In principle, the Tax Administration needs three months to assess your tax return and send you an assessment. That assessment also states the period within which you must pay the tax. For income tax, that term is usually 6 weeks.
Listed like this, it looks straightforward, but as you know by now, the income tax return consists of many different parts and it can be quite complicated to process them all neatly (and advantageously!). Want to be sure your tax return is correct? Our bookkeepers check everything for you. Schedule a meeting!
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As you’ve read above, the calculation of the income tax you have to pay is quite complex. Daarom geven we je hier wat tips om rekening mee te houden wanneer jij in de loop van het jaar inkomstenbelasting opzij zet van je omzet. That’s why we give you some tips here to take into account when you set aside your income tax from your revenue during the year. Keep in mind: the final amount depends on a whole lot of different factors.
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You now know what the income tax return consists of. But when should the tax return actually be filed? And when do you have to pay? We’ll walk you through the timeline.
Income tax returns are filed every year. There are a number of dates to keep in mind:
Are you submitting the return after this deadline? Then you can get a fine and tax interest can be calculated. Are you not filing a return at all, while you’re required to do so? Then the Tax Administration can make an estimate of your income and the tax you have to pay.
Fortunately, it is possible to request an extension. As a private individual, you can request an extension until September 1st of the same year. As a bookkeeping firm, we are allowed to request a longer extension for you: until May 1st of the following year. This gives you a bit more breathing room to prepare the tax return. A provisional assessment can also help you.
Missed a deadline? It can happen. Let us help you explore your options. Schedule an introductory meeting!
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So, now you know how and when you have to file an income tax return. Of course, you can take on the challenge yourself: that saves you the cost of a bookkeeper, but in exchange, it’ll cost you quite a bit of time. Can you put that time to better use elsewhere, or do you want to be sure that everything is in the right place and all possible tax deductions have been applied? We handle your tax return and bookkeeping for a transparent price per financial year. Schedule an introductory meeting!
Can you put that time to better use elsewhere, or do you want to be sure that everything is in the right place and all possible tax deductions have been applied? We handle your tax return and bookkeeping for a transparent price per financial year. Schedule an introductory meeting!
Bookkeeper at Kees de Boekhouder
After reading this blog, are you curious about how Kees de Boekhouder helps entrepreneurs with their bookkeeping every day? Schedule a no-obligation, digital introductory meeting with us!
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The tax return must in principle be received by the Tax Administration before May 1st.
The annual statement consists of a balance sheet and a profit & loss account.. You can draft these yourself or let your bookkeeper do it.
If you combine freelancing with salaried employment, or if you have just started as a freelancer and also worked as an employee during the year, it is best to set aside half of your realized profit. If you work solely as a freelancer, you won’t need to set aside as much. Your bookkeeper can best estimate this for you.
Yes, as a private individual, you can request an extension until September 1st of the same year; a bookkeeping firm is allowed to request an extension until May 1st of the following year.
Schedule a no-obligation, digital introductory meeting with us.
