SME profit exemption

The profit exemption for small and medium-sized enterprises (SME) (mkb-winstvrijstelling) is a tax allowance for your profit. You are allowed the exemption if you are an entrepreneur. You are not allowed the SME exemption for profit which you made as a medegerechtigde (co-title holder, only available in Dutch).

The SME profit exemption is a percentage of the profit gained from 1 or more businesses. The exemption amounts to 14% of the profit. You must first reduce the profit with the ondernemersaftrek (entrepreneur’s allowance, only available in Dutch).

The deduction of the SME profit exemption has been limited. The maximum rate for deduction is 36,93%. The maximum rate for deduction in 2022 is 40%. The maximum rate for deduction in 2021 is 43%. For more information, please visit the page Afbouw tarief aftrekposten als u een hoog inkomen hebt (Phasing out deduction items rates for high-income earners, only available in Dutch).

The SME profit exemption lowers your taxable profit. As a result, you owe less tax. If your business makes a loss, the SME profit exemption reduces the taxable loss, in which case the exemption is disadvantageous for you.

More information

For more information on the SME profit exemption, please call the Tax Information Line for residents.

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