Dutch tax system and taxes in the Netherlands (2023)

This overview tells you how the tax system works in the Netherlands, in particular the annual Dutch income tax return.

Different types of taxes in the Netherlands

Whether you are a Dutch citizen or an expatriate, you are required to pay tax if you earn money while in the Netherlands.

oTax authorities (autoridad fiscal holandesa)collects taxes through a variety of streams. These are the main types of taxes you are likely to encounter in the Netherlands:

income tax (income tax)

If you earn money or arework in hollandThen you have to pay taxes on your income. You report your income tax on your annual tax return (Taxes devolution), which can be done online or with the help of adutch tax consultant.

If you are an employee of a company, income tax will be withheldLohnyour employer refers to this as the payroll tax (which is included in the payroll tax). If you areself employed in hollandthen you must calculate and pay your income tax through the annual tax return.

Income tax (income tax)

Payroll taxes are the taxes and other charges that are withheld by the employer from the worker's wages, saving the worker from having to remit them later as income tax. The accrual of the salary tax consists of the salary tax (salary tax orincome tax) and social security contributions forThe interest rate,unemployment benefitand otherDutch benefits and allowances.

Your employment tax is deducted from your paycheck each month. It is important for expats to consider the deduction when discussing salary.employment contractConditions for a new job. There is a big difference between your gross salary (gross salary)including taxes and your take-home pay (net profit), after tax deduction.

VAT (by the way/IVA)

Belastingdienst also collects tax through sales or income tax (IVA), known in the Netherlands as BTW (IVA). All companies, with the exception of some foundations and associations, are required to add BTW to the price of their products and services. There are three different levels of BTW: 0%, 9%, and 21% (the most common rate).

company (includingfreelancer) must calculate the BTW they earned and spent through their quarterly sales tax return (Tax declaration). You then pay this amount to the Belastingdienst. See the bottom of this page for a list of other types of taxes.

annual income tax return (Taxes devolution)

Even if payroll tax has already been withheld from your gross pay as an advance payment or payment of your payroll tax, you often still have to file an annual tax return. The Dutch tax office will tell you if you are required to do this.

The tax return is required to balance your "prepaid" tax with other financial aspects such as:

  • Your partner's income.
  • Amortgage.
  • Additional income, savings or investments.
  • tax deductions likestudiesohealth careCost.

Do I have to file a Dutch tax return?

The Dutch tax year runs from January 1 to December 31. In January you will receive a letter (explanation letter) of the Belastingdienst, which asks you to:tax returnfor the previous year. If your financial affairs are simple and do not include any of the above items, you may not receive a letter and you may not need to file an annual tax return. You can always visit a Belastingdienst branch or call the Belasting hotline on 0800 0543 to find out if you need to complete a tax return and/or request a letter.

What is the deadline for the Dutch tax return?

The deadline to file your annual tax return is from March 1 to April 30, unless you or your accountant request an extension (delays). You can do this via BelastingTelefoon or Belastingdienst (you will need yourDigit). If you don't file your tax return by May 1, or request an extension, you could be fined.

The Caixa system in the income tax return

Dutch tax return income in the Netherlands is divided into three categories: Box 1, Box 2 or Box 3 (named after the boxes on the form). Each box applies to different types of income and has a different tax rate. Here is an overview of the box categories and their different sources of income:

Box 1: Wage income

Income in box 1 is taxed at different rates depending on how much you earn. Please refer to the table below to see which rates apply to your gross pay.

What does box 1 contain?

Box 1 income includes, but is not limited to:

  • Income from your job or job.
  • income from your business.
  • Income as a freelancer, artist, babysitter or professional athlete.
  • Income from pensions and social benefits.
  • Tips as tips.
  • Foreign Income.

Deductions in Box 1 include, but are not limited to:

  • Deductible home ownership expenses.
  • Income expenses such as B. Pension premiums.
  • Alimony and other food obligations.
  • Specific medical expenses.
  • Temporary stay in a nursing home for people with severe disabilities.
  • Tuition fees and other study costs..
  • Maintenance of a listed building.
  • Waiver of venture capital.

Box 1 tax rates for 2023

You have not yet reached the legal age limit (state retirement age) in 2023:

Annual taxable income (gross)total taxa
0 € - 73.03136,93%
€ 73.031+49,50%

You are reaching the legal retirement age (state retirement age) in 2023:

Annual taxable income (gross)total taxa
0 € - 37.149From 19.03% - 35.44% (depending on the month of birth)
€ 37.149 - 73.03136,93%
€ 73.031+49,50%

You have reached the legal age limit (state retirement age) before 2023 and born in 1946 or after:

Annual taxable income (gross)total taxa
0 € - 37.14919,03%
€ 37.149- 73.03136,93%
€ 73.031+49,50%

Box 1 Tax rates from previous years

Here are the tax rates from Box 1 for prior years:

Box 1 Headphones for 2022

Annual taxable income (gross)total taxa
0 € - 69.39937,07%
€ 69.399+49,50%

Box 1 Headphones for 2021

Annual taxable income (gross)total taxa
0 € - 68.50837,10%
€ 68.508+49,50%

Box 1 Headphones for 2020

Annual taxable income (gross)total taxa
0€ - 20.71136,65%
20.712 € - 68.507 €38,10%
€ 68.508+51,75%

Box 1 Headphones for 2019

Annual taxable income (gross)total taxa
0 € - 20.38436,65%
€ 20.385 - 34.30038,10%
€ 34.301 - 68.50738,10%
€ 68.508+51,75%

Box 1 headphones for 2018

Annual taxable income (gross)total taxatax by
support payment
Accumulated tax payable
0€ - 20.14236,55%*7.362€7.362€
€ 20.143 - 33.99440,85%*5.658 €13.020 €
€ 33.995 - 68.50740,85%14.099 €27.119 €
€ 68.507+51,95%

* Includes 27.65% social security contribution

Box 1 headphones for 2017

This table lists the income tax rates/ranges (Prices) for persons below retirement age:

Annual taxable income (gross)total taxa

tax by
support payment

Accumulated tax payable
0€ - 19.98236,55%*7.303 €7.303 €
€ 19.983 - 33.79140,8%*5.634€12.937€
€ 33.792 - 67.07240,8%13.578 €26.515 €
€ 67.073+52%

* Includes 27.65% social security contribution

Box 2: Income from participation in a limited liability company

Box 2 includes income from a substantial interest or interest (5% or more) in a limited liability company, such as aBV. In 2022 the income of Caixa 2 will be taxed at 26.90%, the same as in 2022 and 2021. In 2020 it was 26.25% and in 2018 and 2019 the income of Caixa 2 was taxed at 25%.

Box 2 recipe contains:

  • Regular profits like dividends.
  • capital gains as B. Stock profits.

Box 3: assets and savings

Box 3 includes income from assets such as savings and investments. The value of your assets minus debts is calculated once a year on January 1 to determine your net worth. Everyone has the right to tax-free capital (tax free capital).

2023 tax-free capital values

In 2023 you can have assets of up to 57,000 euros as a single person and up to 114,000 euros as a couple without tax.

2022 Tax-Free Capital Values

In 2022, as a single you can have up to 50,650 euros and as a couple up to 101,300 euros in tax-free assets.

2021 Tax-Free Capital Values

In 2021 you can have up to 50,000 euros tax-free as a single person and up to 100,000 euros as a couple.

Tax-Free Capital Values ​​in 2020

In 2020 you can have up to 30,846 euros tax-free as a single person and up to 61,692 euros as a couple.

2019 Tax-Free Capital Values

In 2019, you can have assets of up to EUR 30,360 as an individual and up to EUR 60,720 as a couple without tax.

2018 Tax-Free Capital Values

In 2018, you can have assets of up to EUR 30,000 as a single person and up to EUR 60,000 as a couple without tax.

If you are past retirement age, these amounts are higher.

Tax calculated on the capital

Please note that the calculations for 2023 will be available from February 2023.

Capital tax on tax-free amounts is calculated according to three stages (2022):

asset valuePercentage 0.03%Percentage 5.69%% average return
up to €50,65167%33%1,818 %
50.651 € - 962.351 €21%79%4.366%
€ 962.351+0%100%5,53%

Box 3 assets include:

  • shares and shares.
  • Bancoand savings accounts.
  • A second home or an investment property.
  • Endowment life insurance (unless tied to home ownership).

Box 3 exceptions

Some assets are exempt from tax in Box 3, including:

  • The property you live in (if you own it).
  • Furnishings such as furniture, art, or a car (unless it's an investment).
  • certain types ofSafely.
  • Invest in forests, nature or specific green, social, ethical, cultural or startup projects.

30% decision

The 30% refund decision is a tax advantage for certain foreign workers in the Netherlands. The main benefit is that the tax base of your gross Dutch salary is reduced from 100% to 70%. Therefore, 30% of your salary is tax free. Visit the30% decision sideFor more information.

Dutch and non-resident taxes

If you have income from another country or live outside the Netherlands and have Dutch income, you generally have to file an annual Dutch tax return. If you moved to or from the Netherlands during the year, filing your income tax return may be a wise move, as you may be entitled to a substantial tax refund.

Dutch tax partners

Belastingdienst has a broad interpretation of who his tax partner is (tax partner) Maybe. In principle, your tax partner is who you aremarriedTake oneregistered companycom, or just live in a relationship.

General and Labor Tax Credits

Every taxpayer in the Netherlands is entitled to the general tax credit (general tax credit) and every worker is entitled to a Labor Tax Credit (Employee Tax Creditofiscal credit). BothDutch tax creditsthey are calculated by your employer and credited to your payroll tax balance, so you don't have to do anything to receive them. if youI work for youthen tax credits are calculated when you complete your annual tax return.

The amount of your tax credit depends on your income and decreases as your income increases:

Below retirement age in 2023:

taxable incomegeneral tax credit
0€ - 22.261€3.070€
22.261 € - 73.031 €€3,070 - 6.095% x (tax base - €22,660)
73.031€0 €

Other Dutch tax benefits

There are several types ofTax benefits (bonuses) in the Netherlandsfor low-income people. These include:

  • Medical Assistance Scholarship
  • Rental subsidy (rental subsidy)
  • Unemployment benefit (WW benefit)
  • Child Benefits

Other forms of taxation in the Netherlands

There are many other forms of direct and indirect tax in the Netherlands. These include:

major tax (Customs)

Tax paid on goods received or imported from abroad. The amount depends on the value of the merchandise and whether you receive it as an individual or for your company. All imported goods will be taxed with VAT from July 2021. The previous exemption for goods with a value of up to 22 euros is no longer applicable.

Tax on motor vehicles (vehicle tax)

This tax is paid when you buy or import a motor vehicle or when a vehicle is registered in your name. The amount depends on the type of vehicle (car, van, motorcycle, truck, etc.), weight and type of fuel. It falls under the category of environmental taxes.

inheritance tax (inheritance tax)

A tax on wealth acquired by inheritance after a person's death if their wealth and financial affairs were located in the Netherlands.

gift tax (gift tax)

A tax paid on the value of things accepted as gifts from a resident of the Netherlands.

company fee (corporate rate)

It applies to companies based in the Netherlands and companies that receive income from the Netherlands but are not based here.

transfer tax (transfer tax)

The property transfer tax must be paid by the buyer when acquiring a property or a company. The most common form of land transfer tax is applied when someonebuy a house or apartment, whose rate is currently 2% of the value of the property. As of January 1, 2021, people between the ages of 18 and 35 who buy their first property in the Netherlands will not have to pay property transfer tax. As of 2023, the cost of this first property must not exceed 440,000 euros.

gambling tax (wild tax)

In 2023, any game of chance (offline) will have to pay a game commission of 29.5% on winnings over €449.

Dutch tax penalties

As of July 1, 2015, the Dutch tax authorities have increased the penalties for unreported income. The fine for voluntarily declaring hidden income, assets or inheritances is increased from 30% to 75%. Hidden profits discovered by Belastingdienst risk a fine of up to 300%. However, since 2018, self-reporting is no longer possible for taxpayers with unreported savings and capital gains.

Dutch income calculator

To calculate your take-home pay, you can check thatblue umbrellaIncome Calculator:

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