An entrepreneur who receives profits from a business may deduct all business expenses from those profits. The same applies to the recipient of the profits. After all, the income from other activities is determined in accordance with the rules governing profits from a business.
Unpaid hours
An entrepreneur carries out work in the field of project management and process support for spatial planning. The contracts relate to larger projects, for which work is secured through a tendering process. Consequently, a substantial amount of work must be carried out in order to secure a contract.
If a contract is not awarded, these services are not paid for. The interested party wishes to charge these costs to his business profits. He calculates the value of the unpaid hours at €125 (for 2013) and €133 (for 2014) per hour.
Court in The Hague
The Court in The Hague However, it has been ruled that hours worked for one’s own business or activity cannot qualify as deductible expenses. After all, these do not constitute expenses or costs borne by the entrepreneur.