How much tax prepayment do I pay?
How much tax prepayment you will pay.
At a glance
The answer, and what is worth knowing.
- On €20,000 of net profit, the tax is €2,900.00 and the prepayment is €1,595.00.
- In your first year with profits, the prepayment is half: €797.50.
- Salaries and pensions have no prepayment.
How we calculate it
The tax on profits is the part of the year’s tax that falls on the profits, without the Article 16 tax reduction.
The prepayment is 55% of that tax, minus the 20% withheld on your invoices.
The first time you declare profits, the prepayment falls by half. Up to €30.00, it is not charged.
We checked the rules on 19 October 2026. The result is an estimate. It does not replace your payroll or your accountant.
Sources
- Income Tax Code, article 29: the tax on business income · 19 October 2026
- Income Tax Code, article 69: the tax prepayment · 19 October 2026
Frequently asked questions
What is the tax prepayment?
A part of next year’s tax, paid together with the tax on your return. It applies only to profits from a business or self-employment.
How much is the prepayment?
55% of the tax on your profits, minus the tax withheld on your invoices. The first time you declare profits, it is half. Up to €30, it is not charged.
What happens to the prepayment?
The next year, the tax office takes it off your tax. If your profits fall, the difference is refunded or set off.