Starter deduction

When you can use the starter deduction and how NettoWise handles it.

The starter deduction is an extra entrepreneur deduction for starting entrepreneurs. Like the self-employed deduction, it reduces your taxable profit and therefore your taxable income in box 1.

The starter deduction works as an extra reduction on your taxable income, on top of the self-employed deduction.

When you can use this deduction

You can use the starter deduction if you are a starting entrepreneur and meet the conditions, including the hours criterion. Eligibility depends on your personal situation and the tax year.

Where to configure it

You set this per tax year in your entrepreneur deductions.

Go to Portal → Data → Entrepreneur deductions.
Toggle Starter deduction on or off.
Save the change.

Starter deduction in the portal

How NettoWise handles it

NettoWise spreads the starter deduction evenly across the year. A portion is included in your calculation each month.

If you later discover you are not eligible, the amount already applied is spread back over the remaining months. You will then see a negative amount in those months.

Example: spread across 6 months

Assume your annual deduction is € 6,000 and you look at the first 6 months. NettoWise spreads it evenly.

	Jan	Feb	Mar	Apr	May	Jun	Total
Profit	€ 10,000	€ 10,000	€ 10,000	€ 10,000	€ 10,000	€ 10,000	€ 60,000
Deduction	€ 1,000	€ 1,000	€ 1,000	€ 1,000	€ 1,000	€ 1,000	€ 6,000
Profit after deduction	€ 9,000	€ 9,000	€ 9,000	€ 9,000	€ 9,000	€ 9,000	€ 54,000

Example: correction if you are not eligible

Assume the deduction was applied for 3 months and you then discover you are not eligible. The amount already applied is spread back over the remaining months.

	Jan	Feb	Mar	Apr	May	Jun	Total
Profit	€ 10,000	€ 10,000	€ 10,000	€ 10,000	€ 10,000	€ 10,000	€ 60,000
Deduction (correction)	€ 1,000	€ 1,000	€ 1,000	-€ 1,000	-€ 1,000	-€ 1,000	€ 0
Profit after deduction	€ 9,000	€ 9,000	€ 9,000	€ 11,000	€ 11,000	€ 11,000	€ 60,000

Where the deduction sits in the calculation

The starter deduction is applied after your profit and before the SME profit exemption. That lowers your taxable income in box 1 and reduces the final tax calculation.

Swen van Zanten

Developer

Other entrepreneur deductions

Which entrepreneur deductions are not yet in NettoWise and what to expect.

S&O deduction (WBSO)

When you can use the WBSO deduction and how NettoWise handles it.

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