This Is How You Pay Less Tax as an Entrepreneur

By: Together Abroad 29-05-2017

Categories:Enterpreneurs news,

As a self-employed or SME, you want your business to grow. But growth costs money because investing is not for free. Fortunately, the tax authorities have different deductions that give you a push.

We list the main deductions:

SME exemption: Every entrepreneur may deduct 14% of his profit, which reduces taxable profit.
Self-deduction: If you worked for more than 1225 hours in one year, you can deduct 7280 euros from your taxable profit. 
Starter deduction: In the first three years, starters can make up a total of 2123 Euro extra deductions, in addition to the self-employed deduction. The exact rules can be found here.  
Small-scale investment deduction: You may deduct 28% of the investments in your company.
WBSO: If you are researching or developing, this will be fiscally rewarded. The benefits for SMEs and ZZPs are different.
Energy and environmental investment deduction: Who invests in sustainability may deduct extra.
The government costs

Arrangements such as the self-employed deduction, the starters deduction and the SME benefit waiver cost the government annually. A survey by the research institute SEO Economic Research published last month shows that entrepreneurs made use of over 3.5 billion euros in 2015.

Thus, the State is missing a lot of tax revenues, but does it for a good reason. The arrangements should lead to an ‘entrepreneurial economy’, as the SEO calls it. That should lead to higher economic growth and more employment. More profits and more investments should therefore lead to this. But does this actually happen?

But Do We Grow Too?

No, say the researchers. Although there are relatively many entrepreneurs in the Netherlands, the growth of, for example, a ZZP to a ZMP (an independent with staff) is small. In the period between 2007 and 2014, this was 2% to 3% of all ZZPs. And the number of entrepreneurs that grows annually to BV or NV is even smaller by 0.7%.

Yet, the researchers see that the small-scale investment deduction and the early retirement allow self-employed workers to take more staff.


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