The small business profit exemption (MKB-winstvrijstelling)
Last updated:
19-11-2021
The Dutch Income Tax Act provides for a standard deduction of taxable profits for every individual who qualifies as an entrepreneur (conducts a business) in the Netherlands, the so-called small business profit exemption (in Dutch: "MKB-winstvrijstelling").
In 2021 the amount of the deduction equals 14% of profits after the reduction of the claimed Entrepreneurs Deductions. The amount of deduction is, however, capped at a maximum rate of 43% in 2021.
| 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. |