Revenue is not profit
First subtract business expenses, excluding deductible VAT, from revenue. Entrepreneur deductions and the SME profit exemption may then reduce taxable profit.
- keep VAT outside revenue and expenses
- check the hours criterion
- retain evidence for business costs
Box 1 and tax credits
Box 1 has three bands in 2026. Only income above a threshold is charged at the higher rate. The general and employment tax credits then reduce the calculated tax.
Zvw and personal circumstances
A self-employed person generally pays an income-related Zvw contribution as well. A tax partner, mortgage, pension contribution, other income or prior losses can change the final return.
Review the forecast every quarter
Total revenue and expenses excluding VAT year to date, make a reasoned forecast for the remaining months and subtract provisional assessments already paid. The reserve will then follow the real business result.
Do not simply double an unusually strong or weak half-year. Model planned holidays, signed work, investments and seasonality month by month.
- separate VAT
- update expenses
- check deduction eligibility
- subtract assessments already paid
Example: profit halfway through the year
Suppose six months produce €42,000 revenue and €8,000 expenses. Profit so far is €34,000, but the full-year estimate should also include holiday and planned purchases.
Compare estimated income tax and Zvw with the provisional assessment already paid. Only the remaining difference still needs to be built into the tax reserve.
Official sources
Rules were checked in Dutch Tax Administration publications. The official pages are in Dutch.