What is an income tax return?
An income tax return is an annual overview that you (or we on your behalf) submit to the tax authorities. It reports your income, deductions, and any assets for the relevant tax year. Based on this information, the tax authorities determine whether you need to pay extra or will receive a refund.
For entrepreneurs and freelancers, this is often more complex than for employees, because you also have to consider items such as the self-employed deduction, SME profit exemption, and business assets.
Which income is included in my tax return?
In short, all your income is included in the income tax return. Most of this will likely be your earnings from your business or employment. But other items are also included, such as benefits, annuities, assets, and substantial shareholdings.
Read more about boxes 1, 2, and 3 in income tax
What are the different deductions?
As an entrepreneur, you may benefit from various deductions.
Self-employed deduction and starter’s deduction
If you spend at least 1,225 hours per year on your business, you may deduct a fixed amount from your profit. In the first 5 years of your business, this amount is increased. This is called the starter’s deduction, which you can use up to 3 times.
Read more about the hours criterion
SME profit exemption
14% of your profit (after entrepreneurial deductions) is exempt from tax.
R&D (WBSO) deduction
If you are approved under WBSO, you may claim an additional deduction.
Investment deduction
For investments in business assets, you can deduct a percentage of the investment. This includes the Small-Scale Investment Allowance (KIA), Energy Investment Allowance (EIA), and Environmental Investment Allowance (MIA).
Read more about investment deductions.
How do I file my income tax return?
With your subscription at The Bookie, your income tax filing is included. We take care of it for you. Every year on February 14, you can submit the required information.
Read more about how the year-end process works at The Bookie.
How do I pay my income tax?
Once you approve your tax return, we submit it. After that, it goes to the tax authorities. They indicate it may take 3 months up to 2 years before issuing an assessment. In practice, it usually arrives after about 3 months. Once you receive the assessment, you have 6 weeks to pay.
I cannot pay my tax return