As a freelancer you file Dutch income tax (inkomstenbelasting) each year on your business profit. This is separate from your VAT (BTW) return — income tax is your personal tax on profit.
When to file?
You file a return every year for the previous calendar year. The deadline is 1 May (extension until 1 September via DigiD).
Calculate profit
Turnover minus business expenses equals profit from your business. Expenses must be business-related, necessary and documented.
Deductions
Key items are the self-employed deduction (zelfstandigenaftrek), starters' deduction (startersaftrek), MKB profit exemption (14%) and small-scale investment allowance (KIA).
Box 1, 2 and 3
Freelance business income falls in box 1. Private savings and investments usually fall in box 3.
Tips for a smooth tax return
Update your records monthly, export data from SmartWerk and send it to your accountant on time.