When someone becomes our client, we always explain that meeting the 1225-hour requirement each year is very important for their business, as it can have significant financial consequences.
We also explain that these hours should be recorded throughout the year, because the Dutch Tax Administration (Belastingdienst) may request your time records for previous years during a tax audit.
We are sharing this reminder because we are already halfway through 2026. If you have not yet started keeping track of your hours this year, the summer holiday may be a good opportunity to catch up.
Why is the 1225-hour requirement important?
A sole proprietor must spend at least 1225 hours per year working on their business to qualify for certain tax benefits, such as:
- the self-employed deduction (zelfstandigenaftrek);
- the starter’s deduction (startersaftrek);
- other tax benefits for entrepreneurs.
These deductions reduce the amount of personal income tax you have to pay.
The purpose of the hours criterion is to ensure that these tax benefits are only available to entrepreneurs who genuinely spend a significant amount of time running their business.
How should you keep track of your hours?
The Dutch Tax Administration does not prescribe a specific method, but your time records must be detailed and reliable.
It is advisable to record each day:
- the date;
- the activity performed;
- the number of hours spent.
Example
Date: 10 January 2026
- Client visit: 4 hours
- Administration: 1 hour
- Preparing a quotation: 2 hours
Total: 7 hours
More than just billable hours count
The following activities also count towards the 1225 hours:
- administration;
- preparing quotations;
- acquiring new clients;
- maintaining your website;
- studying professional materials;
- attending courses;
- business travel time.
It is also advisable to keep supporting documents, such as:
- calendar entries;
- emails;
- quotations;
- invoices;
- other business documents.
These documents can help support your time records during a tax audit.
Summary
To qualify for entrepreneur tax deductions, a sole proprietor generally needs to spend at least 1225 hours per year on their business.
Accurate time registration is therefore essential. Activities and hours should be recorded daily and, where possible, supported by calendar entries, emails, quotations and other business documents.