Tax as a Dutch freelancer
As a ZZP'er (Dutch sole trader), you pay income tax — inkomstenbelasting — on your profit in Box 1. Unlike employees, nothing is withheld from your invoices automatically. You receive the full amount from your clients and reserve the tax portion yourself.
This is one of the most important habits to build as a freelancer: set aside a percentage of every payment you receive. Peil helps by calculating how much that percentage should be and showing it on your dashboard so you're never caught off guard at tax time.
Key deductions and exemptions
MKB-winstvrijstelling (SME profit exemption)
Every Dutch sole trader automatically benefits from the MKB-winstvrijstelling: 12.70% of your profit is exempt from income tax. You don't need to apply for it — it applies automatically. Peil accounts for this in all its calculations.
Zelfstandigenaftrek (self-employment deduction)
The zelfstandigenaftrek is a fixed deduction from your taxable profit, available if you meet the urencriterium: at least 1,225 billable hours worked per year. Peil tracks your billable hours year-to-date so you can see whether you're on track for the deduction.
Important: this deduction is being phased out. The amount has been reduced year by year and is scheduled to reach €900 by 2027 (from over €7,000 a few years ago). Peil applies the current-year amount in its model.
ZVW contribution
In addition to income tax, freelancers pay a healthcare contribution — the Zorgverzekeringswet (ZVW) income-dependent contribution — on their profit. This sits in a lower bracket than income tax but still needs to be reserved. Peil includes it in the tax model.
How Peil estimates the reserve
Peil uses a monthly financial model. Each month, it projects your annual income based on your current pace, applies the Dutch income tax brackets to that projected income, subtracts applicable deductions (MKB-winstvrijstelling, zelfstandigenaftrek if you qualify), and adds the ZVW contribution. The result is your estimated annual tax liability.
That annual figure is then expressed as a monthly percentage of your revenue — the amount you should be setting aside each month. This percentage is visible on the dashboard and feeds directly into the runway calculation in the Financial Lab.
Adjusting the reserve percentage
Peil's default estimate is based on Dutch tax rules, but your actual situation depends on factors Peil doesn't know — deductible expenses, partner income, mortgage interest, and so on.
If the default feels too conservative or too aggressive for your situation, you can override it in the Financial Lab (Runway section). Set your own reserve percentage, and Peil will use that in all scenario calculations going forward.
VAT is separate
The tax reserve in Peil is for income tax only. VAT is a pass-through: you collect it from clients and remit it to the Dutch Tax Authority (Belastingdienst) each quarter. Peil assumes you've already separated VAT from your net revenue — the income and NER figures in Peil are always VAT-exclusive.
KOR note
If you're enrolled in the KOR (small business VAT exemption), you don't charge VAT and don't remit it. But you still pay income tax on your profit — the tax reserve still applies. See KOR for more on the exemption scheme.
A reasonable starting point for many freelancers: reserve 30–35% of your net revenue for income tax. Peil's model gives you a more precise figure based on your actual income level, but if you're just getting started, that range is a safe conservative target.
Filing your taxes
Peil is not a tax filing tool — it's a financial orientation tool. Use Peil to stay on top of your reserve throughout the year. For the annual income tax return, work with your accountant or use the Belastingdienst's online portal (Mijn Belastingdienst). You can export all the relevant data from Peil via Export.