Am I an entrepreneur for income tax purposes?
Short answer
You are an entrepreneur for income tax purposes if you work independently, expect to make a profit, bear business risk and present yourself as an entrepreneur, for example with several clients and your own investments. Only then are you entitled to the entrepreneur's deductions. If not, your income counts as income from other work (resultaatgenieter).
Updated on · Reviewed by the tax advisers at Boekhoudvriend
Registering with the Chamber of Commerce (KvK) does not automatically make you an entrepreneur in the eyes of the Dutch Tax Administration (Belastingdienst). It looks at all the facts together. The more points that apply, the stronger your position.
What the Belastingdienst looks at
- Independence: you decide how and when you work
- Several clients, now or in the near future
- Profit: you expect to make a profit consistently
- Business risk: you run the risk of not being paid or of making a loss
- You invest, advertise and have your own name or website
- You spend a substantial part of your time on it
Income from other work
If you are not an entrepreneur, you report your income as income from other work (resultaat uit overige werkzaamheden). You then pay tax without the self-employed deduction (zelfstandigenaftrek), starter's deduction (startersaftrek) or SME profit exemption (MKB-winstvrijstelling).
Sources
- Belastingdienst: when are you an entrepreneur for income tax? (in Dutch)
- Belastingdienst: when is someone an employee? (in Dutch)
This answer is general information, not personal advice. Your own situation may work out differently, so feel free to ask our team.