The hours criterion (urencriterium) determines whether you qualify for the self-employed deduction in Dutch income tax. At least 1,225 hours per calendar year — here is what counts.
What is the hours criterion?
Without at least 1,225 hours per calendar year you lose the self-employed deduction. The hours must be spent on your business as a freelancer.
What counts?
Client work, sales and marketing, administration, bookkeeping, professional courses, travel time to clients and website maintenance.
What doesn't count?
General training outside your profession, hours as an employee, volunteer work and usually sick leave hours.
How do you track hours?
Use time tracking in your software or a spreadsheet with date, activity and hours. SmartWerk links invoices to projects.
Starters and the hours criterion
Exceptions may apply in your starting year via the starters' deduction (startersaftrek). Check current rules on Belastingdienst.nl.
Proving your hours: what to keep
The Tax Authority can ask you to substantiate your hours. Keep a time log with date, activity and hours, and also keep invoices, calendar entries and emails. Records kept during the year are far more reliable than an estimate afterwards.
How to keep pace
The criterion amounts to just over 23 hours a week on average. Check where you stand each quarter. If you are behind, you can adjust with sales, admin or training that belongs to your profession.
What if you are ill or pregnant?
For certain situations, such as pregnancy or illness, additional rules or adjustments can apply under conditions. Read the current conditions on the Tax Authority's website or ask your adviser.
Frequently asked questions
Does travel time to clients count?
Travel time to clients generally counts as time spent on your business. Commuting to your own fixed business premises is treated differently; ask for advice if in doubt.
Do hours from a part-time job count?
No, hours as an employee don't count towards the hours criterion. You must make the 1,225 hours within your business, which is the biggest pitfall with side jobs.
How many hours do I need in my first year?
The hours criterion generally applies in your starting year as well; the starters' deduction regime has its own conditions. Check the current rules at belastingdienst.nl.
What if I don't reach 1,225 hours?
Then you lose the self-employed deduction and starters' deduction. The SME profit exemption can still apply, depending on your situation.