The hour criterion for private entrepreneurs in the Dutch Income Tax Act
The Dutch Income Tax Act provides for various tax incentives for individuals who work a minimum number of hours per calendar year in a private business or more than one private businesses of the same individual.
This hour criterion is set at 1225 hours per annum. No partial recalculation / pro-rata is allowed when only working part-time or only part of the year.
The hours need to be mainly spent on one or more businesses of the individual, unless the individual did not have an enterprise in one of the five preceding years.
Family members and persons belonging to the household of the entrepreneur will not be able to meet the hour criterion if their contributions are of an auxiliary nature and it is generally uncommon that such a co-operation would exist between non-related parties, or the activities of the person itself do not qualify as conducting an enterprise.
In case of pregnancy, the hours corresponding with legal maternity leave for employees can in essence be included as working hours.
| The above information is prepared with utmost care, but it cannot be guaranteed that the rules have not changed since the date of publication or that your personal situation triggers the application of specific rules which deviate from the above. Before you use this information we therefore strongly recommend that you consult us to determine your personal Dutch income tax position. If you require our follow up, you can contact us via e-mail or call us at our offices in Amsterdam + 31 (20) 570 9440 or Rotterdam + 31 (10) 2010466. |