Tax allowance

for self-employed individuals

In 2019 the Dutch government originally decided to reduce the tax allowance for self-employed individuals (currently EUR 7,280) to EUR 5,000 by 8 increments of EUR 250 and one of EUR 380, starting in 2020 (until 2028). A new proposal provides for increasing the increments by EUR 110 effective from 2021, and to then reduce the tax allowance even further effective from 2029 by EUR 110 increments to EUR 3,240 in 2036.
The general employed person’s tax credit, on the other hand, will be increased. With these measures the government aims at reducing the discrepancies between self-employed individuals and employees even further, to avoid and combat pseudo-self-employment.