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Entrepreneurial discounts

What are entrepeneurial discounts? 

As you've probably allready heard it's allmost allways fiscally beneficial to be an entrepeneur. That is mostly because of the entrepeneurial discounts. If you are a client with The Bookie we'll take care of your income tax return and apply the entrepeneurial discounts for you. 

This are the discounts that are deductible from your profits. The discounts consist of:

- Self-employed discount: this is a discount on your taxable income (profit) with which, if you're eligible, you have to pay less income tax. 

- Startersdiscount: The self-employed discount is raised with a startersdiscount if you where no entrepeneur in 1 or more of the 5 previous years and applied the self-employed discount 2 times or less. So, you can claim this discount 3 times in the first 5 years of your self-employed years, if you are an entrepeneur for the income tax. 

- Startersdiscount with an incapacity for work

- Discount for research and developmentwork 

- Cooperate deduction

- Discontinuation deduction

If you are an entrepeneur for income tax purposes you are eligible for entrepeneurial discounts if you meet the hour criteria (1225 hours). If you are a co-titleholder you are not eligible for these discounts. 

SME profitexemption 

After the entrepeneurial discounts are applied, as a sole proprietor the SME profitexemption then automatically goes into effect. In 2020 the exemption is 14% of the profit, after you've deducted the entrepeneurial discounts ofcourse. 

Incometax tool

If you want to get an idea of which discounts are applicable to your business and how this effects your profits, you can use our tool: https://www.thebookie.nl/tools/inkomstenbelasting/ (Dutch only)

PS. the calculations are aproximations only, no rights can be derived! 

Example 1: 20.000 profit, no 1225 hours of work, no entrepeneur discounts

Example 2: 20.000 profit, 1225 hour criterium met, no starters discount

Example 3: 20.000 profit, 1225 hour criterium met, startersdiscount applied 

 

 

 

 

 

 

 

 

 

 

by Mari Last update: 03 Feb, 2023