Your income tax estimate

Besides VAT, you pay income tax on your profit: what you earned minus your business costs. You file it once a year, in the spring after the year ends. The Income tax page shows an estimate, so the bill doesn't surprise you.

This is an estimate, not your tax return. You file the return yourself at the Belastingdienst, or your accountant does.

What you see

• Profit: your revenue minus your costs, straight from your books.
• Deductions: amounts taken off your profit before tax (see below).
• Tax: the estimated income tax plus the healthcare contribution (Zvw).
• Put aside: the share of every euro of profit to keep apart for the tax. Early in the year it says Too early to say; after a month of bookings it bases the share on your pace.

While the year is still running, the figures are up to today. The year's deductions are counted in full, so a mid-year estimate can look low.

Your situation

Answer these on the page. They change the deductions:

• Hours criterion (1,225h): did you spend at least 1,225 hours on your business this year? Netto fills this in from the hours you logged on the Hours page; change it if your real hours differ.
• Starter: in your first 5 years as an entrepreneur you can get an extra deduction, at most 3 times.
• Include Zvw: the income-dependent healthcare contribution. You owe it on your profit.

The deductions in plain words

• Zelfstandigenaftrek (self-employed deduction): a fixed amount off your profit. Only with the hours criterion.
• Startersaftrek (starter deduction): an extra amount on top, for starters. Also only with the hours criterion.
• MKB-winstvrijstelling (small business profit exemption): a percentage of what's left is tax-free. No hours needed.
• KIA (investment deduction): when you bought more than €2,900 of equipment in a year. See Equipment over €450.
• Tax credits (heffingskortingen): discounts on the tax itself that everyone gets, smaller as your income rises.

Some costs are added back: only part of meals and drinks with clients counts, and fines never do. See Which category is this cost?

What the estimate leaves out

Netto assumes your business profit is your only income, and that you have no fiscal partner, mortgage or other deductions. It works everything out as for an eenmanszaak (sole proprietorship); if the KvK lists your business as a BV or VOF, the page warns you.

Do you also have a salary? Then your tax and Zvw will be different. Use the estimate as a guide, and check your real return.

When a new year's tax rules are not published yet, the page says so and shows no estimate for that year. Netto never estimates with last year's figures.