False self-employment of freelancers
In dit artikel vertellen we alles over de aangescherpte regels rondom schijnzelfstandigheid bij ZZP’ers die per 1 januari 2025 zijn ingegaan.
Many entrepreneurs start their business as a sole proprietorship. This is usually because it is easier and often more advantageous from a tax perspective in the start-up phase. As your business grows, expands and/or generates more profit, it may be wise and advantageous to convert your sole proprietorship into a bv. The point at which it becomes more advantageous from a tax perspective to convert your sole proprietorship or general partnership into a bv is called the tax turning point. But where exactly is this turning point and what needs to be taken into account?
There is a big difference in how a bv is taxed versus a sole proprietorship. A sole proprietorship is taxed in Box 1 of income tax as “profit from business,” where a bv is taxed at the corporate income tax rate. The income tax rate is a lot higher than the corporate tax rate. However, as an entrepreneur for income tax purposes, you are entitled to several tax deductions, these deductions are the: self-employment deduction, starter deduction and the SME profit exemption. These deductions often make the sole proprietorship and vof more fiscally advantageous than the bv in the early stages.
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As mentioned earlier, from the so-called turning point it is fiscally more advantageous to establish a bv versus a sole proprietorship. This turning point can already be at a profit of €82,500 per year. This turning point depends on your personal situation, whether you are a start-up entrepreneur and how much dividend you pay out. By reducing the deductions for sole proprietorships, the turning point has become much lower in recent years, making it increasingly fiscally attractive to convert the sole proprietorship into a bv. Also in the coming years, the deductions for self-employed entrepreneurs will continue to be reduced, making the turning point lower and lower.
If you think converting your sole proprietorship into a Dutch bv is advantageous for your situation, or if you would like more information about whether converting your sole proprietorship into a besloten vennootschap is a smart choice, please contact us. We will guide you through the entire process from the moment with whether it is advantageous until the limited liability company is established and if necessary further with the administration and tax returns.
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In dit artikel vertellen we alles over de aangescherpte regels rondom schijnzelfstandigheid bij ZZP’ers die per 1 januari 2025 zijn ingegaan.
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