Dutch bookkeeping and tax, in plain English.

A

Annual accounts (jaarrekening)

The financial statements of your business, including at least a balance sheet and a profit and loss account. Annual accounts are mandatory for a BV and must be filed. Read more about Annual accounts (jaarrekening) →

B

Balance sheet

An overview of what your business owns (assets) and how that is financed (equity and liabilities) at a given moment, usually the end of the financial year. Read more about Balance sheet →

Box 2

The part of income tax for income from a substantial interest: when you hold 5% or more of the shares in a BV. In 2026, you pay 24.5% up to €68,843 and 31% above that. Read more about Box 2 →

C

Corporate income tax (VPB)

Tax a BV pays on its profit: 19% on the first €200,000 and 25.8% above that. Read more about Corporate income tax (VPB) →

Current account (rekening-courant)

A running account between you and your BV that records mutual payments and debts. A debt to your BV above €500,000 is taxed in box 2. Read more about Current account (rekening-courant) →

Customary salary (gebruikelijk loon)

The minimum salary a DGA must pay themselves from the BV, based on what someone in a comparable position would earn. In 2026, the standard amount is €58,000. Read more about Customary salary (gebruikelijk loon) →

D

Depreciation

Spreading the cost of an investment, such as a laptop or van, over the years you use it. This way, large purchases do not weigh on your profit in a single year. Read more about Depreciation →

DGA (director-major shareholder)

Directeur-grootaandeelhouder: the director of a BV who owns at least 5% of the shares. A DGA must pay themselves a customary salary. Read more about DGA (director-major shareholder) →

Dividend

Profit after corporate income tax that a BV distributes to its shareholders. The BV withholds 15% dividend tax; as a DGA, you pay box 2 tax on the dividend. Read more about Dividend →

F

Filing (deponeren)

Making the annual accounts of a BV public at the Chamber of Commerce (KvK). This must be done no later than twelve months after the end of the financial year. Read more about Filing (deponeren) →

Fiscal partner

Your spouse, registered partner or cohabiting partner who meets certain conditions. With a fiscal partner, you can split certain items in your tax return. Read more about Fiscal partner →

Full service (service)

Our package in which we take your entire bookkeeping off your hands in Exact Online: processing, bank, VAT, annual accounts and tax returns. Read more about Full service (service) →

G

General ledger (grootboek)

The overview of all accounts in your bookkeeping, such as revenue, costs, bank and receivables. Every entry is posted to one or more general ledger accounts. Read more about General ledger (grootboek) →

General partnership (VOF)

Vennootschap onder firma: two or more business owners running a business together. Each partner pays income tax on their share of the profit. Read more about General partnership (VOF) →

H

Holding company

A BV that holds shares in another BV, the operating company. A holding company is often used to separate risks and to arrange profit or assets flexibly. Read more about Holding company →

Hours criterion (urencriterium)

The requirement to spend at least 1,225 hours a year on your business to be entitled to the self-employed deduction and the starter's deduction. Read more about Hours criterion (urencriterium) →

I

ICP listing

The listing of intra-Community supplies (opgaaf ICP): an overview of goods and services supplied to businesses in other EU countries for which you reverse-charge the VAT. Read more about ICP listing →

Income tax return

The annual return in which you, as a sole proprietor or partner in a VOF, report your profit and private income. The return for 2025 must be filed by 1 May 2026, unless you have an extension. Read more about Income tax return →

Input VAT (voorbelasting)

The VAT you pay on business purchases and costs. You deduct it from the VAT you charged on your turnover. Read more about Input VAT (voorbelasting) →

K

KIA (small business investment allowance)

An extra deduction if, in a given year, you invest more than a minimum amount in business assets, such as equipment, tools or a company van. In 2026, it is 28% for investments of €2,901 to €71,683. Read more about KIA (small business investment allowance) →

KOR (small business scheme)

A VAT exemption for businesses with a turnover of up to €20,000 a year. You do not charge VAT, but you also cannot deduct VAT on your costs. Read more about KOR (small business scheme) →

M

Margin scheme (margeregeling)

A VAT scheme for selling second-hand goods, such as cars, under which you only pay VAT on your profit margin and not on the full selling price. Read more about Margin scheme (margeregeling) →

O

OSS scheme

The One Stop Shop: a single return for VAT on sales to consumers in other EU countries, once you exceed the EU threshold of €10,000. Read more about OSS scheme →

P

Participation exemption (deelnemingsvrijstelling)

An exemption in corporate income tax: profit from a shareholding of 5% or more, such as dividends from your operating company, is tax-free in your holding company. Read more about Participation exemption (deelnemingsvrijstelling) →

Payroll taxes (loonheffingen)

The collective name for wage tax, national insurance contributions, employee insurance contributions and the income-related Health Insurance Act (Zvw) contribution that you withhold or pay as an employer. Read more about Payroll taxes (loonheffingen) →

Private use addition (bijtelling)

An amount added to your profit or salary if you also use a company car privately. In 2026, the addition is usually 22% of the list price per year, with a lower percentage for electric cars. Read more about Private use addition (bijtelling) →

Profit and loss account

An overview of your revenue and costs over a period. The difference is your profit or loss. Read more about Profit and loss account →

Provisional assessment (voorlopige aanslag)

An assessment the Dutch Tax Administration (Belastingdienst) issues in advance based on your expected income, so you pay the tax in instalments rather than all at once afterwards. Read more about Provisional assessment (voorlopige aanslag) →

R

Result from other activities (resultaatgenieter)

Someone who earns income from work outside employment, but is not considered a business owner by the Dutch Tax Administration (Belastingdienst). You pay tax on your result, without the entrepreneur's deductions or the SME profit exemption. Read more about Result from other activities (resultaatgenieter) →

Reverse-charge VAT (btw verleggen)

A scheme under which your client, not you, accounts for the VAT. It applies, among other things, to subcontracting in construction and to services for businesses in other EU countries. Read more about Reverse-charge VAT (btw verleggen) →

Review (service)

Our package in which you do your own bookkeeping in Jortt Plus, and we review your records, file your returns and prepare your annual accounts. Read more about Review (service) →

S

Self-employed deduction (zelfstandigenaftrek)

A fixed deduction for business owners who meet the hours criterion: €1,200 in 2026, with further reductions in the coming years. Read more about Self-employed deduction (zelfstandigenaftrek) →

SME profit exemption (MKB-winstvrijstelling)

An exemption of 12.7% of your profit, after deducting the entrepreneur's deductions. You are entitled to it as a business owner for income tax purposes, even without meeting the hours criterion. Read more about SME profit exemption (MKB-winstvrijstelling) →

Sole proprietorship (eenmanszaak)

The most popular legal form for self-employed people. You are the business yourself, pay income tax on your profit and are personally liable. Read more about Sole proprietorship (eenmanszaak) →

Starter's deduction (startersaftrek)

An extra deduction on top of the self-employed deduction for new business owners: €2,123 in 2026, up to three times in the first five years. Read more about Starter's deduction (startersaftrek) →

Supplementary VAT return (suppletie)

A correction to a VAT return you filed earlier, for example if you discover an error or forgot an invoice. Read more about Supplementary VAT return (suppletie) →

V

VAT (btw)

Tax you charge on your turnover and pay to the Dutch Tax Administration (Belastingdienst). You deduct the VAT you pay on business costs as input VAT. The rates are 21%, 9% and 0%. Read more about VAT (btw) →

W

Work-related costs scheme (WKR)

The scheme under which you as an employer can spend part of your wage bill tax-free on allowances and benefits. In 2026, the discretionary allowance is 2% of the first €400,000 of the taxable wage bill and 1.18% above that. Read more about Work-related costs scheme (WKR) →