Many Dutch entrepreneur tax deductions depend on the hours criterion (urencriterium). It is often summarised as “1,225 hours per year”, but in practice the rules are more nuanced — and there are situations where hours do not count at all, even if you genuinely work in the business.

This article explains:

  • what the hours criterion is,
  • when you meet it,
  • which hours count,
  • and in which situations hours explicitly do not count.

What is the hours criterion?

You meet the urencriterium if you satisfy both of the following conditions in a calendar year:

  1. You spend at least 1,225 hours on your business.
  2. You spend more time on your business than on other activities, such as paid employment.

The hours criterion applies per calendar year. If you start your business partway through the year, the threshold is not reduced — you still need to meet 1,225 hours for that year.

Exceptions to the second condition

There is an important exception to the “more time than other work” requirement.

If you were not an entrepreneur in one or more of the five preceding calendar years, you do not need to meet the second condition. In that case, only the 1,225‑hour threshold applies.

This exception is particularly relevant for first‑time starters or people returning to entrepreneurship after a longer break.

Pregnancy exception

If your work for the business was interrupted due to pregnancy, the hours not worked during a maximum of 16 weeks are still counted as working hours.

This rule exists to prevent pregnancy‑related interruptions from disqualifying you from entrepreneur deductions.

Which hours count?

All hours you genuinely spend on your business count, not just hours you invoice to clients.

Examples of hours that do count:

  • working for clients
  • preparing quotations or proposals
  • maintaining your administration
  • updating your website
  • marketing and networking activities
  • travel time for business purposes

In short: any time that is reasonably attributable to running your business counts.

You must be able to substantiate your hours

There is no prescribed format for time tracking, but you must be able to make it plausible how many hours you spent on your business.

The Belastingdienst may ask for an explanation or supporting evidence. If you cannot reasonably substantiate your hours, the hours criterion may be rejected — even if you believe you worked enough.

Situations where hours do not count

There are specific cases where hours are explicitly excluded, even if you did real work.

This applies if you are part of a partnership (maatschap or vennootschap onder firma) with connected persons, such as:

  • family members in the direct line (parents, children),
  • their partners,
  • or people you live with.

In these situations, your hours do not count if either of the following applies:

1. An unusual partnership with mainly supporting work

Your hours do not count if:

  • the partnership is considered unusual, and
  • you perform 70% or more supporting activities.

A partnership is considered unusual if independent third parties would not normally enter into such an arrangement.

Example:

  • A partnership between a dentist and a dental hygienist is considered normal (each person brings in business)
  • A partnership between a dentist and their assistant is generally considered unusual, especially if the assistant mainly performs supporting work. (the assistant only supports the main activity)

2. You do not receive profit as an entrepreneur

Your hours also do not count if:

  • connected partners receive profit as entrepreneurs,
  • but you do not, for example in certain types of sub‑partnerships (ondermaatschap).

In that case, even genuine work does not qualify for the hours criterion.

A lower hours threshold in one specific case

For the startersaftrek for disabled entrepreneurs, the regular hours criterion does not apply.

Instead:

  • you must spend at least 800 hours per year on your business,
  • and you must receive an officially recognised disability benefit.

Only this specific deduction uses the lower threshold.

Why the hours criterion matters

The hours criterion determines access to several entrepreneur deductions, including:

  • the zelfstandigenaftrek,
  • the regular startersaftrek,
  • the R&D deduction,
  • the meewerkaftrek.

Failing the hours test often means losing multiple deductions at once — which is why it deserves careful attention.

Key takeaway

The hours criterion is not just a number.

  • Meeting 1,225 hours is necessary, but not always sufficient.
  • Some hours count, others explicitly do not.
  • Family or household partnerships are a frequent pitfall.
  • Substantiation matters.

Always assess the hours criterion before assuming you qualify for entrepreneur tax deductions.

Frequently Asked Questions

Is the 1,225-hour threshold lower if I start my business mid-year?

No. The criterion applies per calendar year and the threshold is not reduced if you start partway through the year.

Which hours count towards the 1,225?

All the hours you genuinely spend on your business, not only the ones you invoice: working for clients, preparing quotations, administration, updating your website, marketing and networking, and business travel.

Do I have to track my hours?

There is no prescribed format, but you must be able to make your hours plausible if the Belastingdienst asks. If you can't substantiate them, the criterion may be rejected.

Sources

General information, not tax advice. I am not a tax adviser (belastingadviseur); for your own situation, consider asking a qualified one.