How to deduct starting costs from your income tax

  • KVK Editors
  • How to
  • 7 October 2025
  • Edited 24 October 2025
  • 2 min
  • Starting
  • Finance

Are you starting your own business? Then you might be spending money on it even before you have registered with KVK. Costs for a laptop, tools, or training, for example. Some of these costs can be deducted from your tax return. You will then pay less income tax. This article explains what you can deduct and what you need to do when you file your tax return.

What do you need to do and arrange when starting a business?

Find out with the 'Personal to-do list' on Business.gov.nl. Answer the questions and see the steps that are important in your situation.

Create your personal list

Money you spend on business expenses before you officially start your business is called starting costs (aanloopkosten).

How can you deduct starting costs?

After you register at KVK, the Netherlands Tax Administration will inform you if you must file an income tax return as an entrepreneur. If so, you can deduct the starting costs from your profit (in Dutch).

Deduct VAT or not?

Have you already reclaimed the VAT in your VAT return? Then deduct the starting costs without VAT. If you cannot deduct the VAT, for example, because you take part in the small businesses scheme (KOR), then deduct the costs including VAT.

Deducting costs

You can deduct anything that costs less than €450 in 1 tax return.

Example:

You have a website made for your new business for €400 in March 2025. In September 2025, you register at KVK. You can deduct this €400 when you file your income tax return for 2025 in 2026.

Writing off costs

Anything costing more than €450 that you use for longer than a year is an investment. You must write off these costs. This means you deduct a part of the cost each year.

Example:

You buy a machine for €25,000 in January 2025. You can use this machine for 5 years and after that it will still be worth €5,000. You deduct this residual value from the purchase price: €25,000 - €5,000 = €20,000.

Then divide this amount by the number of years you can use the machine: €20,000 / 5 = €4,000. So, you can deduct €4,000 from your profit each year for this machine.

Which costs can you deduct?

You can only deduct the cost of items or services you buy for your business. If you buy something you also use privately, you usually cannot deduct the costs for that.

You can deductYou cannot deduct
Work laptopClothing (only protective workwear is allowed)
Course or training for your businessDriving licence
Registration KVKGifts for family or friends

Not sure? Ask your accountant or bookkeeper for advice. Or ask yourself, would I buy this even if I were not starting a business? If the answer is yes, then you are probably not allowed to deduct the costs.

What do I need to deduct the costs?

Keep all receipts and invoices. Make sure they always show these details:

  • the date you bought the product or service
  • the name of the seller
  • your name or the name of your business
  • a description of what you bought
  • the price
  • the amount of VAT you paid

Keeping track of your hours

Also record the hours you spend preparing to start your business. These count towards the hours criterion. This way, you may qualify for even more tax benefits for entrepreneurs, such as tax relief for new companies or the private business ownership allowance.

Keep track of travel expenses

Do you incur travel expenses preparing to start your business? Then record how many kilometres you have travelled and for what purpose. These records are useful for your tax return.

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