![]() The sources of income for the income tax return for entrepreneurs are divided into three categories: The following is an overview of the three main taxes you may face as a business owner: A. Most entrepreneurs have to deal with VAT and income or corporate tax. You are then not an entrepreneur for income tax purposes, but you are eligible for corporation tax. If your company is a legal entity, such as a private limited company or public limited company, then you are not jointly and severally liable for debts. ![]() Are you liable for your company’s debts? If you have a sole proprietorship, partnership or general partnership, you are jointly and severally liable for the debts and you are an entrepreneur for income tax purposes. ![]() Anyone who is at risk is considered an entrepreneur Is there an entrepreneurial risk? If you run the risk that clients do not pay for services provided and if you are dependent on the supply and demand for your products or services, you run a business risk.This can be done by advertising, your own website or a logo. Are you promoting your business? An entrepreneur must actively show both offline and online that he has a business and should promote it.This will reduce your business risks and increase your independence and self-reliance. How many clients do you have? You should strive to have multiple clients.If this is not the case, the tax authorities see your work as a hobby and you fall into another category of income tax (see below) Furthermore, your business must be profitable. For example, you must meet the hour criterion of 1,225 hours per calendar year to be eligible for the tax benefits. Do you put enough time into your business? Entrepreneurs must work a minimum amount of hours on their business to show that they are an entrepreneur for the tax authorities.Furthermore, you must be able to ensure continuity by the company in lesser times for a while to keep running. Do you have sufficient capital to start a business? According to the tax authorities you need to have capital to be able to invest in advertising, hiring people and insurance.How independent is your company? Do you decide for yourself how you carry out your work and how you organize your business? Then you will more quickly be seen as an entrepreneur. ![]() Do you make a profit and if so, how much? If you only make a small profit or structurally suffer losses, you are not an entrepreneur according to the tax authorities.The tax authorities ask themselves the following questions: Your business must participate in the ‘economic traffic’ and make a profit. If you are an entrepreneur for VAT purposes, this does not automatically mean that you are also an entrepreneur for income tax. When are you an entrepreneur for the tax authorities? Whether the tax authorities will actually regard your business activities as ‘profit from business’ is somewhat more complicated. The idea that a registration with the Chamber of Commerce or meeting the annual hours criterion is sufficient for this is based on a misunderstanding. Not every entrepreneur or self-employed person is automatically entitled to the various deductions. Is every self-employed person entitled to deductions? Then contact us for assistance with your bookkeeping, VAT and income tax obligations. Once you are registered the tax authorities are automatically informed. You need to make an appointment for this. Fortunately, there are a number of useful tax breaks that you can use to your advantage as a self-employed person (provided you meet the requirements).Īrticle: Soleproprietorship or limited company (BV)? Registration in the trade register of the Chamber of Commerceįirst step to become self employed is that you register your one man business in the trade register of the Chamber of Commerce. What taxes do you have to deal with as an entrepreneur? What deductions are there for entrepreneurs? Starting your own business often requires the necessary financial investments. But you can also work through a BV (private limited company) or cooperate with others in a V.O.F. Most starting entrepreneurs start with a sole proprietorship. You have registered as a self-employed person with the Chamber of Commerce or you are about to start your own business.
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