Dutch Tax Glossary for Freelancers: Every NL Term Explained in English (2026)

A blue envelope arrives and it says naheffingsaanslag. Your accountant emails about your voorlopige aanslag. A form asks for your OB-nummer. If you freelance in the Netherlands without speaking Dutch, unfamiliar tax jargon is a weekly event. This glossary explains every term you are likely to meet — in plain English, with the 2026 amounts and rates where they exist. Bookmark it, Ctrl+F it, and if you are just getting started, read our full guide to freelancing in the Netherlands without speaking Dutch first.

The Numbers That Matter in 2026

Income Tax (Inkomstenbelasting)

Inkomstenbelasting (income tax)

The tax on your personal income, filed once a year. If you run an eenmanszaak (sole proprietorship), your business profit flows into your personal income tax return in box 1 — there is no separate "business tax return" for sole traders. See our overview of the 2026 tax rates for freelancers.

Box 1 (income from work and home)

The box that taxes salary, business profit and your owner-occupied home. 2026 rates (below state pension age): 35.75% up to €38,883, 37.56% from €38,883 to €78,426, and 49.50% above that.

Box 2 (income from substantial interest)

Taxes dividends and gains for anyone owning at least 5% of a company — typically the DGA of a BV. 2026: 24.5% up to €68,843 (doubled with a fiscal partner), 31% above that.

Box 3 (income from savings and investments)

Taxes an assumed return on your wealth above the tax-free allowance. 2026: rate 36%, tax-free allowance (heffingsvrij vermogen) €59,357 per person (€118,714 with a fiscal partner). Provisional fictitious returns: savings 1.28%, investments 6.00%, debts 2.70%.

Winst uit onderneming (profit from enterprise)

The income category for people the Belastingdienst recognises as entrepreneurs. Only this category unlocks the entrepreneur deductions (zelfstandigenaftrek, startersaftrek) and the MKB-winstvrijstelling.

Resultaat uit overige werkzaamheden / ROW (result from other activities)

The middle category between employment and enterprise, used for incidental freelance income when you are not a full entrepreneur. Still taxed in box 1, but without the entrepreneur deductions.

Fiscale partner (fiscal / tax partner)

A spouse, registered partner or qualifying cohabitant with whom you may divide certain income and deductions on your return. Several thresholds double — for example the box 3 allowance becomes €118,714.

Heffingskortingen (tax credits)

Discounts subtracted directly from the tax you owe (not from your income). The two main ones for freelancers are the algemene heffingskorting and the arbeidskorting below.

Algemene heffingskorting (general tax credit)

The base credit for everyone with income. 2026 maximum: €3,115 (up from €3,068). It phases out as income rises from roughly €29,736 and is gone around €78,426.

Arbeidskorting (labour tax credit)

The credit for people with work income — business profit counts. 2026 maximum: €5,685 (up from €5,599), phasing out for incomes above roughly €45,592.

Wereldinkomen (worldwide income)

Your total income from Dutch and foreign sources combined. If you moved partway through a year or live abroad, the Belastingdienst may ask you to file an "Opgaaf wereldinkomen".

Belastingverdrag (tax treaty)

A double-taxation treaty between the Netherlands and another country. It determines which country may tax which income, so you are not taxed twice on the same euro.

M-formulier (migration-year tax form)

The income tax return for the year you immigrate to or emigrate from the Netherlands, covering the part-resident, part-non-resident year. It cannot yet be filed fully online in all situations — many expats hand this one to an English-speaking accountant.

BTW (VAT / Omzetbelasting)

Most freelancers deal with BTW every quarter. If your first return is coming up, our step-by-step guide to filing your first BTW return in English walks you through the actual form.

Omzetbelasting / BTW (turnover tax / VAT)

The tax you charge customers on top of your fee and remit to the Belastingdienst, usually per quarter. "Omzetbelasting" is the formal legal name; "BTW" (belasting over de toegevoegde waarde) is what everyone actually says.

BTW-tarieven (VAT rates)

2026: standard 21%, reduced 9% (food, medicines, books, passenger transport, hairdressers) and 0% (mainly exports and EU supplies, with the right to reclaim input VAT). Note: accommodation (logies) moved from 9% to 21% on 1 January 2026, while the planned increase for culture, media and sport was reversed — those stay at 9%.

Voorbelasting (input VAT)

The VAT you pay on business purchases — laptop, software, accountant — which you subtract from the VAT you owe in your return. You cannot deduct voorbelasting on VAT-exempt activities.

BTW verlegd (VAT reverse-charged)

A mechanism where the customer accounts for the VAT instead of you. Common for EU B2B services and Dutch construction subcontracting. Your invoice states "btw verlegd" and shows €0 VAT.

ICP-opgaaf (statement of intra-Community supplies)

A separate return listing the goods and services you supplied to VAT-registered businesses in other EU countries with reverse-charged VAT. Filed alongside your regular BTW return.

Kleineondernemersregeling / KOR (small-businesses scheme)

An optional VAT exemption if your turnover stays at or below €20,000 per year: you charge no VAT and file no BTW returns, but you also cannot reclaim input VAT. Since 1 January 2026 you may leave the KOR at any moment (previously you were locked in for 3 years). Full details in our KOR guide.

Suppletie (VAT correction return)

The form you use to correct an earlier BTW return when you discover you declared too much or too little — typically for corrections of €1,000 or more.

BTW-id (VAT identification number)

Your public VAT number: it goes on invoices and your website. For sole traders it deliberately does not contain your BSN, for privacy reasons.

OB-nummer (turnover-tax number)

Your internal VAT number, used in correspondence with the Belastingdienst. For sole traders it embeds your BSN, which is exactly why you should never publish it.

Deductions & Allowances (Aftrekposten)

Ondernemersaftrek (entrepreneur’s deduction)

The umbrella term for all deductions reserved for recognised entrepreneurs: zelfstandigenaftrek, startersaftrek, stakingsaftrek and a few others. If a letter mentions "ondernemersaftrek", it means this family of deductions.

Zelfstandigenaftrek (self-employed deduction)

A fixed deduction from your profit for entrepreneurs who meet the urencriterium. 2026: €1,200, down from €2,470 in 2025, and dropping again to €900 in 2027 as the government phases it down to narrow the tax gap between employees and the self-employed.

Startersaftrek (starter’s deduction)

An extra deduction on top of the zelfstandigenaftrek for new entrepreneurs. 2026: €2,123, usable at most 3 times in your first 5 years. Combined 2026 maximum with the zelfstandigenaftrek: €3,323.

MKB-winstvrijstelling (SME profit exemption)

A percentage of your profit (after the ondernemersaftrek) that is simply exempt from income tax. 2026: 12.7%, unchanged from 2025; the benefit is capped at the 37.56% rate. Unlike the zelfstandigenaftrek, you get this even without meeting the urencriterium.

Urencriterium (hours criterion)

The requirement to spend at least 1,225 hours per calendar year on your business to qualify for the zelfstandigenaftrek and startersaftrek. Admin, acquisition and travel count too, and you may spread the hours over the year however you like — but you must be able to substantiate them.

Kleinschaligheidsinvesteringsaftrek / KIA (small-scale investment deduction)

An extra deduction when you invest in business assets. For 2026, investments between €2,901 and €69,765 give a 28% deduction; above that the deduction becomes a fixed amount and then tapers off to zero for very large investment totals. Individual assets under €450 do not count.

Willekeurige afschrijving (arbitrary depreciation)

A scheme that lets you choose when to depreciate certain assets — for example as a starter or for environmental investments — so you can pull deductions forward for a cash-flow advantage.

Werkruimte-aftrek (home-workspace deduction)

You may deduct home-office costs only if the space is a "zelfstandige werkruimte": its own entrance and sanitary facilities, rentable to a third party, and you earn a set share of your income there. A desk in the living room does not qualify.

Kilometervergoeding (mileage allowance)

The tax-free per-kilometre rate for business travel with a private vehicle. 2026: €0.25/km, up from €0.23 — approved by policy decision with retroactive effect to 1 January 2026.

Legal Forms & Registration (Rechtsvormen & Registratie)

ZZP’er / zelfstandige (self-employed person without staff)

Short for "zelfstandige zonder personeel" — a self-employed person without employees. It describes how you work, not a legal form: most ZZP'ers operate as an eenmanszaak.

Eenmanszaak (sole proprietorship)

The simplest legal form and the one most expat freelancers choose — including Americans on the DAFT visa. You and the business are one legal entity: profit is taxed in box 1 and you are personally liable for business debts.

VOF / vennootschap onder firma (general partnership)

A business run by two or more partners. Each partner is taxed on their own profit share in box 1, each qualifying partner can use the entrepreneur deductions, and partners are jointly and personally liable.

BV / besloten vennootschap (private limited company)

A separate legal entity: the company pays corporate tax, you pay yourself a salary, and your personal liability is limited. Often worth considering above a certain profit level — see ZZP vs BV for the trade-offs.

DGA / directeur-grootaandeelhouder (director-major shareholder)

Someone who both runs and owns at least 5% of a BV. A DGA must pay themselves a "gebruikelijk loon" and pays box 2 tax on dividends.

Gebruikelijk loon (customary salary)

The minimum salary a DGA must pay themselves before taking profit as dividend. 2026 norm: €58,000 (up from €56,000).

KvK / Handelsregister (Chamber of Commerce / Business Register)

You register your business with the Kamer van Koophandel (KvK), which lists it in the Handelsregister and issues your 8-digit KVK-nummer. Our guide to KvK registration for foreign freelancers covers the appointment step by step.

BSN / burgerservicenummer (citizen service number)

Your personal identification number for all Dutch government dealings, including tax. You need a BSN before you can register a business.

RNI (Non-residents Records Database)

The registration route for non-residents and newcomers to obtain a BSN before they have a Dutch address.

DigiD (Dutch digital ID)

The personal login for Dutch government portals — tax, benefits, healthcare. Requires a BSN. As a sole trader you file your income tax return with DigiD.

eHerkenning (business login / eRecognition)

The paid business equivalent of DigiD, needed by BVs and some other entities to file with the Belastingdienst and other government bodies.

Bewaarplicht (retention obligation)

The legal duty to keep your business records for 7 years (10 years for records related to real estate). That includes invoices, bank statements, contracts and your hours log.

Invoicing & Getting Paid (Facturen & Betalingen)

Factuur / factuureisen (invoice / invoice requirements)

A compliant Dutch invoice must show: a unique sequential number, the invoice date, your and the customer's name and address, your BTW-id and KVK number, a description of the work, the VAT rate and amount, and totals excluding and including VAT.

Creditfactuur (credit note)

An invoice that reverses or corrects one you sent earlier — after a cancellation or a mistake. It carries a negative amount and gets its own number in your sequence.

Opdrachtgever (client / principal)

The party that hires you for an assignment (opdracht). The word matters legally: too much control by a single opdrachtgever is a core red flag in the false self-employment rules.

Aanmaning (payment reminder / demand)

A formal notice giving a debtor a final term to pay an overdue invoice. For business clients, you may charge collection costs once the payment term has lapsed.

Incasso / incassokosten (debt collection / collection costs)

The process — in or out of court — of recovering unpaid invoices, and the statutory costs you may add on top of the amount owed.

Letters & Assessments (Aanslagen & Bezwaar)

This is the section to open when a blue envelope lands on your doormat. For a walkthrough of the actual letters — what each one looks like and what to do — see Belastingdienst letters explained.

Aangifte (tax return / declaration)

The formal filing in which you declare income or turnover so tax can be assessed — for example the aangifte inkomstenbelasting (annual income tax return) or BTW-aangifte (quarterly VAT return).

Voorlopige aanslag (provisional assessment)

An estimated assessment that lets you pay (or receive back) income tax in instalments during the year, instead of one big bill afterwards. If your profit changes, you submit an adjustment — you do not file a formal objection against a voorlopige aanslag.

Definitieve aanslag (final assessment)

The binding tax bill issued after your return has been processed. Disagree? You can lodge a formal bezwaar within 6 weeks.

Naheffingsaanslag (additional assessment — VAT/payroll)

An extra assessment used mainly for VAT and payroll tax when you paid too little: the Belastingdienst levies the difference, often with interest or a penalty on top.

Navorderingsaanslag (additional assessment — income/corporate tax)

The income-tax counterpart: after a final assessment, the Belastingdienst discovers you owe more. It generally requires a "new fact" or bad faith on your side.

Belastingrente (tax interest)

Interest charged (or paid to you) when tax is settled late. 2026: 5% for income tax and most other taxes, down from 6.5% in 2025; 7.5% for corporate tax.

Verzuimboete (default penalty)

A fixed penalty for procedural failures — filing or paying too late — regardless of your intent. Annoying, but the milder of the two penalty types.

Vergrijpboete (offence penalty)

The heavy one: a percentage-based penalty for intent or gross negligence, such as deliberately understating income. It comes on top of the tax itself.

Bezwaar (objection)

A formal written objection against an assessment, normally within 6 weeks of the assessment date. If the letter or the stakes confuse you, an English-speaking accountant can draft it for you.

Uitstel (deferral / extension)

Either extra time to file your return, or a postponement of payment — the latter is granted automatically while a bezwaar is pending.

Social Security & Insurance (Sociale Zekerheid & Verzekeringen)

Zvw-bijdrage (income-dependent healthcare contribution)

A percentage of your income that you owe on top of your monthly health-insurance premium. 2026 rate for the self-employed: 4.85% (down from 5.26%), over a maximum contribution income of €79,409. It arrives as its own assessment — many newcomers mistake it for a random extra tax. More in our guide to health insurance for expat freelancers.

Zorgtoeslag (healthcare allowance)

A means-tested subsidy toward your health-insurance premium. For 2026 it runs up to roughly €129 per month for singles (about €246 with a partner), with income caps around €40,857 (single) and asset caps applying — exact amounts per Dienst Toeslagen.

Toeslagen (benefits / allowances)

The family of means-tested subsidies from Dienst Toeslagen: zorgtoeslag (healthcare), huurtoeslag (rent), kinderopvangtoeslag (childcare) and kindgebonden budget (child budget). Freelancers qualify like anyone else — eligibility depends on income and assets.

AOV / arbeidsongeschiktheidsverzekering (disability insurance)

Private insurance that replaces income if you cannot work due to illness or injury. Currently voluntary for entrepreneurs. Status mid-2026: a mandatory basic scheme (Wet BAZ) is before parliament, with introduction expected around 1 January 2030 and an opt-out for those who already hold a qualifying private AOV.

Arbeidsongeschiktheid (incapacity for work)

The state of being unable to work — the risk that an AOV (and the planned BAZ scheme) covers. As a freelancer you have no employer safety net, which is why this word shows up in every insurance conversation.

Pension & Retirement (Pensioen)

Oudedagsreserve / FOR (old-age reserve)

The old tax-deferred retirement reserve for entrepreneurs — abolished for new build-up since 1 January 2023. Existing reserves may stay on the balance sheet or be converted to an annuity, but nothing new can be added. If an older article recommends "doteren aan de FOR", it is out of date.

Lijfrente (annuity)

The pension-style product most freelancers use to save for retirement tax-deductibly, within their jaarruimte. Contributions are deductible now; payouts are taxed later as income. See our full ZZP pension guide.

Jaarruimte (annual pension allowance)

The maximum annuity premium you may deduct this year. Since the 2023 pension reform it is roughly 30% of your income above the AOW franchise — for 2026 the franchise is reported at €19,172 with a maximum jaarruimte of €35,589 (secondary sources; verify your exact figure with the Belastingdienst calculator).

Self-Employment Law (Wet DBA & Schijnzelfstandigheid)

Wet DBA (Assessment of Employment Relationships Act)

The law governing whether you are genuinely self-employed or effectively an employee of your client. It is the legal backbone of the enforcement that started in earnest on 1 January 2026.

Modelovereenkomst (model agreement)

A pre-approved contract template between freelancer and client meant to show there is no employment relationship. Existing approved templates remain valid until end-2029 at the latest — but the Belastingdienst judges the actual working relationship, not the paper.

Schijnzelfstandigheid (false self-employment)

Working as a "freelancer" on paper while the relationship is really employment: fixed hours, authority, no entrepreneurial risk. Fully enforced since 1 January 2026. Read the complete picture — criteria, penalties, action plan — in our false self-employment guide.

VBAR / Zelfstandigenwet (self-employment legislation, status mid-2026)

The moving target of Dutch freelance law. Status mid-2026: the clarification part of the draft VBAR was scrapped on 6 March 2026; a new Zelfstandigenwet is being drafted (2027 at the earliest). The rechtsvermoeden — a legal presumption of employment below €38/hour — was detached as separate legislation and published in the Staatsblad on 29 June 2026.

Expat-Specific

Expatregeling / 30%-regeling (30% ruling)

The scheme that lets employers pay qualifying incoming employees up to 30% of salary tax-free for extraterritorial costs. It stays at 30% in 2025 and 2026 and drops to a flat 27% from 2027. Crucially, it applies to employees — not to eenmanszaak profit. Whether a freelancer can still benefit (for example via a BV) is covered in our 30% ruling guide for freelancers.

Ending a Business (Bedrijfsbeëindiging)

Stakingswinst (cessation profit)

The profit realised when you stop your business: hidden reserves, goodwill and released fiscal reserves all become taxable in the final year. Leaving the Netherlands? Our guide to closing your eenmanszaak when leaving the Netherlands covers the whole checklist.

Stakingsaftrek (cessation deduction)

A one-off deduction that reduces your stakingswinst: maximum €3,630 in 2026 (unchanged), usable once in a lifetime (an unused remainder can carry to a later cessation). It is scheduled to fall to €908 in 2027 and to be abolished by 2030 — timing your exit matters.

FAQ

What does zelfstandigenaftrek mean?

It is the Dutch self-employed deduction: a fixed amount subtracted from your business profit before income tax is calculated. In 2026 it is €1,200 (down from €2,470 in 2025, dropping to €900 in 2027). You only qualify if the Belastingdienst recognises you as an entrepreneur and you meet the urencriterium of 1,225 hours per year.

What is the urencriterium in English?

The "hours criterion": at least 1,225 hours per calendar year spent on your business to qualify for entrepreneur deductions like the zelfstandigenaftrek and startersaftrek. All business time counts — admin, travel, acquisition — and you may spread the hours across the year however you like.

What does voorlopige aanslag mean?

A provisional tax assessment: an estimate that lets you pay income tax in monthly instalments during the year (or receive refunds early). It is not the final bill — if your profit changes you simply submit an adjustment. The binding bill is the definitieve aanslag that follows after your annual return.

What is the difference between a BTW-id and an OB-nummer?

The BTW-id is your public VAT number for invoices and your website; it does not contain your BSN. The OB-nummer is your internal VAT number for correspondence with the Belastingdienst; for sole traders it embeds your BSN, so never publish it.