Which personnel costs are tax deductible? Every entrepreneur incurs expenses, and part of these can be tax deductible. This means that these costs can help when calculating your profit, resulting in you paying less tax in the end. In this blog, we discuss which personnel costs are deductible and what you should take into account.
When do you record personnel costs?
There are different ways to process costs in your administration:
Costs you can deduct in one year
Some costs may be deducted fully in the same year. This applies, for example, to:
Costs that must be spread over several years
Some personnel-related investments cannot be deducted all at once but must be spread over several years. Examples include:
How do you process personnel costs for tax purposes?
Personnel costs are recorded in your administration as business expenses. Important points of attention here are:
Good to know
Not all personnel costs are fully deductible. When an expense has both a business and private character, you may only deduct the business portion. For example:
For the exact percentages and conditions, you can visit the website of the Dutch Tax Administration. Here you will find the most up-to-date regulations regarding deductible personnel costs for entrepreneurs.
Would you like to be sure which personnel costs are tax deductible in your situation? Feel free to contact us for a no-obligation consultation!
