Self-employed deduction

When you can use the self-employed deduction and how NettoWise handles it.

The self-employed deduction is an entrepreneur deduction that lowers your taxable profit. That reduces your taxable income in box 1, which lowers your tax calculation.

Key effect: the deduction reduces your taxable income in box 1, which makes your net income higher.

When you can use this deduction

In general, you need to be an entrepreneur for income tax purposes and meet the hours criterion. Whether you are eligible 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 Self-employed deduction on or off.
Save the change.

Self-employed deduction in the portal

How NettoWise handles it

NettoWise spreads the self-employed deduction evenly across the year. You see part of the deduction applied every month.

If the deduction has already been applied and you later find out you were 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 self-employed 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

S&O deduction (WBSO)

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

One-time financing costs

Enter one-time closing costs so NettoWise includes the deduction.

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