Special tax deductions for the private entrepreneur (Ondernemersaftrek)

The Dutch Income Tax Act provides for a number of extra tax deductions for private entrepreneurs, generally referred to as Entrepreneurs Deduction (in Dutch: 'ondernemersaftrek'). The primary condition to be met is that the individual has the fiscal status of entrepreneur (conducting a business).

The Entrepreneurs Deduction includes the following tax deductions:

• the self-employed deduction (in Dutch: 'zelfstandigenaftrek');
• the deduction for Research and Development activities (in Dutch: 'aftrek speur- en ontwikkelingswerk');
• the co-operating partner deduction (in Dutch: 'meewerkaftrek');
• the start-up deduction in case of disability (in Dutch: “startersaftrek bij arbeidsongeschiktheid”); and
• the liquidation deduction (in Dutch: 'stakingsaftrek'). 

The above mentioned deductions must be claimed in the annual income tax return.