The hourly criterion for private entrepreneurs in the Dutch Income Tax Act

The Dutch Income Tax Act provides for various tax incentives for individuals who work a minimum number of hours per calendar year in a private business or more than one private businesses of the same individual. This criterion is set at 1225 hours per annum in 2023. No partial recalculation / pro-rata application is allowed when only working part-time or only part of the year.

The hours need to be mainly spent on one or more businesses of the individual and must be more hours than spent on other work (e.g. employment). Latter requirement does not apply if the individual did not have an enterprise in one of the five preceding years. 

Family members and persons belonging to the household of the entrepreneur will not be able to meet the hourly criterion if their contributions are of an auxiliary nature and it is generally uncommon that such a co-operation would exist between non-related parties, or the activities of the person itself do not qualify as conducting an enterprise.

In case of pregnancy, the hours corresponding with legal maternity leave (16 weeks) for employees can be included as working hours. Sick days and vacation days do not count as working hours.