Question about being ZZP as software engineer ?

[kutaybektas]

Hello , 

 

I am considering working as ZZP to gain extra income in addition to my full-time job. For a while , I am investigating everything about being ZZP in Netherlands and sometimes I am losing myself within a lot of different topics specially that ones related to "Tax"  and "Regulation" topics.

 

What I want to know is ,

 

Is there any profit/income limit that I need to reach within my first  year to keep my company running ? 

 

I do not have any "fixed" client right now and I am planning to find some customers via famous "freelance job sites".I want to do experience this journey within a "smooth" scope in addition to my full time job.

 

Could you please give me some information about this topic ? 

 

Any help/comment will be appreciated .

 

Kind regards.

 

Kutay.

 

 

 

 

 

Mocht jij hierbij kunnen helpen, dan kun je contact opnemen via een PM binnen Higherlevel.nl :

[RubenT]

Welcome at Higherlevel.

 

Did you already find this information? You can find a lot more relevant information about starting a business in The Netherlands, in English. 

 

26 minuten geleden, kutaybektas zei:

Is there any profit/income limit that I need to reach within my first  year to keep my company running ? 

No, there is not, from a legal perspective. 

 

 

48 minuten geleden, kutaybektas zei:

Could you please give me some information about this topic ? 

Assuming you'll start as a sole proprietorship, the profit of your company will be added to the income of your regular job for income tax. 

[kutaybektas]

1 minute ago, RubenT said:

Welcome at Higherlevel.

 

Did you already find this information? You can find a lot more relevant information about starting a business in The Netherlands, in English. 

 

No, there is not, from a legal perspective. 

 

 

Assuming you'll start as a sole proprietorship, the profit of your company will be added to the income of your regular job for income tax. 

 

Yes , I will start as a sole proprietorship. 

 

What is the best way to manage/follow this "taxing" topics ? 

 

I assume , I need to declare income of my own business separately .

 

I am getting my salary(net) after deduction of the required tax amounts from my current employer .

 

How the tax authorities will manage  additional income that comes from  my own business?

 

What is the main logic behind that?

 

[RubenT]

16 minuten geleden, kutaybektas zei:

How the tax authorities will manage  additional income that comes from  my own business?

 

By filing your income tax return.

[kutaybektas]

5 minutes ago, RubenT said:

By filing your income tax return.

 

Another question , 

 

if I cannot find any client within one year and not able to provide any income from my own business 

Will I be subject to any penalties due to the inactivity of my own business?

 

 

 

[RubenT]

10 uur geleden, kutaybektas zei:

Will I be subject to any penalties due to the inactivity of my own business?

No, you wont. It is good to know that the Dutch Tax Administration decides if you're an entrepreneur or not, you can find more about that at this page. So if you only work for family or friends, or if you don't make any profit for multiple years, it is possible that the Tax Administration decides that you're not an entrepreneur (for income tax) anymore. The consequence is that you are not eligible to benefit from the SME profit exemption anymore.

 

This won't be an issue in your starting years, they understand that it takes time to grow with your business.

 

 

[Ron van der Kolk]

12 uur geleden, kutaybektas zei:

I am getting my salary(net) after deduction of the required tax amounts from my current employer .

 

How the tax authorities will manage  additional income that comes from  my own business?

 

What is the main logic behind that?

The logic is that the income tax that your employer withholds is only an estimate. Your employer does not now about your other earnings, assets, deductibles and fiscal schemes. By filing an income tax return you can supply the Netherlands Tax Administration with all the information they need or a recalculation of income tax based on your personal situation.

[kutaybektas]

4 hours ago, RubenT said:

No, you wont. It is good to know that the Dutch Tax Administration decides if you're an entrepreneur or not, you can find more about that at this page. So if you only work for family or friends, or if you don't make any profit for multiple years, it is possible that the Tax Administration decides that you're not an entrepreneur (for income tax) anymore. The consequence is that you are not eligible to benefit from the SME profit exemption anymore.

 

This won't be an issue in your starting years, they understand that it takes time to grow with your business.

 

 

 

This one might be so specific, but I will again ask another question, 

 

I am getting advantage of %30 tax ruling right now and I still have 3 years in addition.

 

Is there any risk to lose this advantage after I started to gain additional income from my side business?

 

 

 

[Ron van der Kolk]

6 uur geleden, Ron van der Kolk zei:

all the information they need or a recalculation

I meant to type "all the information they need for a recalculation". I apologise for the typo.

[Joost Rietveld]

6 uur geleden, kutaybektas zei:

Is there any risk to lose this advantage after I started to gain additional income from my side business?

 

No, just as long as you know that the 30% ruling doesn't apply to your company's profit, and take in to consideration that the ruling has u specific labor income threshold that you need to stay above.