SME profit exemption reduced to 12.7% in 2025

What changes?

Are you a self-employed professional (zzp’er) or SME entrepreneur? And are you an entrepreneur for income tax purposes? The SME profit exemption (mkb-winstvrijstelling) for small and medium-sized companies will go down in 2025. In 2025 you can deduct 12.70% from your profit through the SME profit exemption, in other words your taxable profits will be lower. Currently – in 2024 – this is 13.31%. This means in 2025 you will pay more taxes on your profits.

For whom?

• Self-employed professionals and SME entrepreneurs who pay income tax, and thus have a legal form without legal personality, for example a sole proprietorship, general partnership (vof), or partnership.

When?

It is expected this change in law will take effect from 1 January 2025.

Please note: The effective date of this measure is not yet final. Entry into force is subject to its passing through the Lower and Upper Houses (Tweede en Eerste Kamer) of parliament. After publication in the Staatsblad or Staatscourant (Government Gazette, in Dutch) the law can take effect.

Do you think government rules are unclear?

Do the rules create unnecessary administrative burdens? Or do you know how the rules could make doing business easier? You can report this (anonymously) to the Regulatory Reporting Centre (Meldpunt regelgeving).