Employees and ZZP'ers (freelancers) both pay Box 1 income tax over the same brackets, but the path differs. An employee has wage tax withheld monthly and files a simple return to settle deductions and credits. A ZZP'er invoices gross, pays no wage tax during the year, and instead claims entrepreneur deductions (zelfstandigenaftrek, MKB-winstvrijstelling) in the return, plus handles VAT (BTW) quarterly. Taxmo serves both: a personal return for employees from €49, and a full ZZP bookkeeping + filing platform.
Your employer withholds loonheffing every month, including the general tax credit and labour credit. The annual return mostly settles the difference: deductions such as mortgage interest or medical costs typically produce a refund. With one employer and no side income, the return takes about 15 minutes.
A freelancer receives gross income and pays income tax via (provisional) assessments. In return there are entrepreneur benefits: the zelfstandigenaftrek (€2.470 in 2025, being phased down), the 12,7% MKB-winstvrijstelling, and possibly startersaftrek, provided you meet the 1.225-hour criterion. On top of income tax, a ZZP'er files quarterly VAT returns and keeps records (a KvK registration is required).
Earning freelance income next to employment? Small-scale side income is usually reported as 'resultaat uit overige werkzaamheden' in the same Box 1 return, without entrepreneur deductions. When it grows into a real business, KvK registration and VAT obligations follow. Taxmo's ZZP product handles the bookkeeping, BTW, and the IB-Winst return when you reach that point.