5 essential deductions that every entrepreneur should know

Hey there, fellow entrepreneur! The wonderful world of entrepreneurship can sometimes feel like a jungle, especially when it comes to taxes. But there are a number of deductions that can help you save a lot. 

Here are four you should definitely know about 

1. Self-employed deduction: Fixed amount of €5,030 in 2023. If you meet the hours criterion (at least 1,225 hours per year spent on your business), you are eligible.
2. Start-up deduction: Fixed amount of € 2,123 in 2023. Take advantage of this during the first 3 years of your business.
3. SME profit exemption: No fixed amount, but a percentage of 14%. After deducting the above items, you will receive this percentage of your profit as a deduction.
4. Investment deduction: Depending on your investment, you can benefit from the KIA, EIA or MIA.
   

Calculation example

Suppose you started your business on March 1, 2023 and you have worked an average of 38 hours in and on your business. You have a turnover of €75,000 and €25,000 in costs, which gives you a profit of €50,000. You have also invested in a new laptop (€ 2,500 ex VAT) and telephone (€ 900 ex VAT). Turnover: €75,000Costs: -€25,000Profit: €50,000Self-employed deduction: -€5,030Starter deduction: -€2,123Taxable profit after these deductions: €42,847SME profit exemption (14% of €42,847): -€5,999Taxable profit after SME: €36,848Investment deduction (28% of €3,400, based on the current KIA bracket): -€952Taxable profit after investment deduction: €35,896 So you do not pay tax on €50,000, but on only €35,896. That's a saving of no less than € 14,104. NB! Please inform the tax authorities that you are taking advantage of all deductions. Don't worry, we will arrange that for you! 

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