Self-Employed Deduction
The self-employed deduction (zelfstandigenaftrek) is a tax benefit specifically for income tax entrepreneurs (IB-entrepreneurs). If you meet the hours criterion – spending at least 1,225 hours per year on your business – you can apply the self-employed deduction. In 2025, the self-employed deduction is €2,470. This amount is subtracted from your taxable profit in box 1. Note: the deduction will be further reduced in coming years. In 2023 it was still €5,030, and it is being phased down gradually. The deduction can only be claimed at the base rate of 36.97%.
Example
You're a freelancer and your profit is €45,000. You meet the hours criterion. You deduct the self-employed deduction of €2,470, lowering your taxable profit to €42,530. At 36.97%, this saves you €913 in tax.
Why does this matter?
As an entrepreneur, the self-employed deduction is one of your basic tax benefits. Make sure you keep good records of your hours, as the tax authorities may ask for proof. Combine it with the starter's deduction and the SME profit exemption for maximum benefit.