Income Tax for the Self-Employed: What You Need to Know in 2025
Income Tax for the Self-Employed: What You Need to Know in 2025
If you run your own business or work as a freelancer in the Netherlands, you’re required to pay income tax on your business profits. This works differently from being an employee, where tax is automatically deducted from your salary. As a self-employed professional, you pay tax afterwards, based on your annual income tax return.
Your total tax burden depends on your profit, available deductions, assets, and other financial factors.
Filing Your Income Tax Return in 2025
You must file your income tax return between March 1 and May 1, 2025.
Can’t file on time? You can request an extension before May 1.
The Dutch Tax and Customs Administration (Belastingdienst) will process your return and issue a provisional and later a final assessment. Be aware that filing late can lead to a fine.
Income Tax Rates for 2025
| Taxable income | Rate |
|---|---|
| Up to €38,441 | 35.82% |
| €38,441 – €76,817 | 37.48% |
| Above €76,817 | 49.50% |
In practice, you’ll often pay less thanks to tax deductions such as the self-employed deduction (€2,470 in 2025) and the SME profit exemption (12.7%).
Key Tax Deductions
- Self-employed deduction: Available if you meet the 1,225-hour annual work requirement.
- Start-up deduction: Extra deduction for new entrepreneurs (available up to three times within five years).
- SME profit exemption: A portion of your profit (12.7%) that’s exempt from tax.
- Business expenses: Such as office supplies, software, and travel costs related to your work.
Health Insurance Contribution (ZVW)
In addition to income tax, you’ll also pay an income-dependent Health Insurance Act (ZVW) contribution.
In 2025, this is 5.26% of your business profit, up to a certain income limit.
Smart Tips for Your Tax Return
- Keep your bookkeeping up to date — issue invoices promptly and save your receipts.
- Set aside 30–40% of your profit for taxes.
- Use a calculator tool like “Bereken je Belasting” (“Calculate Your Tax”) for accurate estimates.
- Apply for a provisional assessment if you’d prefer to pay your tax in instalments.
Don’t Confuse Income Tax with VAT
VAT (omzetbelasting) is separate from income tax.
Most freelancers file a quarterly VAT return, with deadlines on January 31, April 30, July 31, and October 31.
Need a Hand?
Boekhouding-ZZP can help you file your tax return and manage your bookkeeping — with or without an accountant.
You can also use Moneybird alongside our support.
📧 Contact us at info@zzp-boekhouder.nl
Conclusion
As a self-employed professional, you pay income tax based on your annual profit.
By taking advantage of the right deductions and keeping your records in order, you can save a significant amount.
When in doubt, seek advice from a tax specialist — it can help you avoid surprises when the final tax assessment arrives.