Mid-November... Autumn is almost over, winter is on the doorstep with all of us beloved New Year holidays and... - summing up the results of the year. What will be the financial result of my business, how much taxes will I have to pay - these are the questions our clients are asking today.
In this regard, we hasten to remind you that a private entrepreneur in the Netherlands is entitled to a number of additional benefits and discounts that can significantly reduce his taxes, and, accordingly, increase the net profit from business.
One of the main conditions for the application of most of such discounts is the fulfillment by the entrepreneur during the calendar year of the hour criterion, that is, it is necessary to devote at least 1225 hours a year to your business, which must be documented.
The Dutch tax office so covers this question:
Earlier, we also paid serious attention to the issue of the hour criterion and hour administration - detailed article about him posted on the website Nalog.nl in the Knowledge Base in the subsection "Useful information for entrepreneurs"
The current 2020 turned out to be a very difficult year for business, and many entrepreneurs ask - what about meeting the hourly criterion if my revenue has dropped significantly or, at times, is completely absent? The IRS went to meet them, and in the summer of 2020 published the following changes
Here it is necessary to understand that the criterion itself (the norm of 1225 hours per year) remained unchanged. And the indulgences affected only the content of the administration of this administration in the corresponding tables and records.
According to these changes, from March 1, 2020 to October 1, 2020, you can spend AT LEAST 24 hours a week on your business, even if you “didn’t do it” - that is, you didn’t have enough income for this. This means that the tax office allows you to display in such a table the hours spent on “preparing or developing” the services or actions you need for your business, and the amount of revenue may be significantly less than in 2019 during the same period.
The main thing - do not forget to keep your hourly administration, because it is a necessary condition for you to be an entrepreneur in the tax sense and to have the opportunity to take advantage of the appropriate discounts when drawing up an annual declaration.
If you have any questions about this or other topics - ask us, and we are always ready to help you!
Publication Date: 19.11.2020
