2019 tax credits for business owners

Retirement reserve

The 2019 retirement reserve addition for entrepreneurs has been fixed at 9.44 percent of business earnings to a maximum of 8,999 euros (net of pension premiums having been charged to business earnings).

Entrepreneur’s allowance

In order for an entrepreneur to pass the hours test and thus qualify for entrepreneur’s allowance, he or she has to devote at least 1,225 hours per annum and half of his or her aggregate working hours to his or her business. The entrepreneur’s allowance comprises:

• self-employed person’s tax relief,
• relief in connection with research and development work,
• co-working partner’s relief,
• start-up business relief for the occupationally disabled,
• business discontinuation relief.

Of these five types of relief it is only the that in connection with research and development work whose level has changed, to 12,775 euros for 2019. Those having lacked entrepreneurial status during any one of the five preceding calendar years by whom the research and development relief has not been applied more than twice during said term will be eligible for further R&D relief in the additional amount of 6,391 euros.

Hybrid costs

This category comprises mixed business and private costs, whose deductibility from business earnings is subject to restriction. 80 percent deduction is available for:

• food and beverage costs and costs of stimulants,
• entertainment costs (including costs relating to receptions, festivities and shows/performances),
• costs associated with conferences, seminars, symposiums, excursions, field trips and the like.

The entrepreneur at his or her discretion may has a choice between not deducting 20 percent of actually incurred hybrid costs or deducting the full complement of hybrid costs incurred subject to addition to his or her business earnings of a fixed amount of 4,600 euros.

Exemption for small and medium-sized enterprises

The exemption for SMEs has remained unchanged in 2019, at 14 percent of business earnings.

Dutch version: Aftrekposten ondernemers 2019