Entrepreneur’s allowance

Business owners may be eligible for the entrepreneur’s allowance (ondernemersaftrek). Deducted from profit so that the entrepreneur pays less tax, the entrepreneur’s allowance consists of:

• private business ownership allowance;
• tax relief for new companies;
• co-working partner’s relief;
• R&D tax relief;
• business discontinuation relief;
• tax relief for new companies in the event of incapacity for work.

Conditions

You must meet the time criterion for most parts of the entrepreneur’s allowance. This means that you must spend more than 50% of your working time working for your own company. This requirement does not apply if you have not been an entrepreneur in the last five years. In addition, you must work for your own company for at least 1,225 hours. The time criterion does not apply for discontinuation relief (stakingsaftrek) and the SME profit exemption (MKB-winstvrijstelling).