Pandemic Tax Debts: A Persistent Struggle for the Self-Employed

In the aftermath of the Covid-19 pandemic, self-employed individuals continue to face a steep climb as they work to repay accumulated tax debts. This issue remains a significant burden on the self-employed sector, as newly released figures from Statistics Netherlands illustrate the ongoing struggle.

The Dire Data

Recent statistics revealed that a larger proportion of self-employed individuals are grappling with tax debts compared to the pre-pandemic era. In 2019, before the pandemic struck, just under 14 percent of self-employed individuals without employees and slightly over 13 percent of those with staff had tax debts. However, as the pandemic swept across nations, closing down restaurants, shops, and theaters, these numbers rose sharply.

A Glimpse into Recovery

Last year showed a slight uptick, with 27 percent of solo self-employed individuals and 31 percent of business owners with employees still wrestling with taxes owed. Although there’s been a small reduction from 2023 figures, it remains clear that the effects of the pandemic continue to linger.

Comparing Sectors

The salaried employees weren’t entirely spared as they too saw an increase in tax debts, peaking slightly at 6 percent and dropping back to a near pre-pandemic level last year. Compared to self-employed individuals, the recovery for salaried counterparts appears steadier yet still demands attention.

A Mounting Figure

The enormity of these debts is staggering. By 2024, the combined tax debt of entrepreneurs and employees reached approximately 5.5 billion euros, a significant increase from the 2.4 billion euros back in early 2019. Many took advantage of tax deferral schemes during the pandemic, temporarily easing their financial burdens but consequently building deeper debts.

Gradual Decline Yet a Long Road Ahead

Current data from the tax authorities highlight a slight reprieve. Over 120,000 entrepreneurs began 2025 with unpaid Covid-related tax debts, amounting to roughly 5.9 billion euros, but this has declined to approximately 4.7 billion euros involving 107,662 entrepreneurs. Under a payment plan initiated in October 2022, these debts are slated for gradual repayment over 60 months, concluding in October 2027.

Concluding Thoughts

As self-employed individuals push forward, they face a journey not devoid of challenges but characterized by resilience. As stated in NL Times, the repayment saga unfolds, highlighting the formidable path to recovery faced by the entrepreneurial spirit.

Reporting by ANP and NL Times