Dutch tax system & Taxes in the Netherlands

Income tax in the Netherlands

Even though the wage tax has already been withheld from the agreed gross salary, the latter is also subject to Dutch income tax.

However, usually you need to pay low or even no income tax because the Dutch wage tax is designed as an advance levy to the Dutch income tax.

To download the (income) tax return programme visit the Belastingdienst. Note that the tax return programme is available for Macintosh, Windows and Linux.

Indirect taxes in the Netherlands

Value added tax (VAT)

On the sale price (usually 21%).

 Taxes on legal transactions

On (almost) every refinancing, disposal, acquisition, restructuring or initial public offering.

 Excise duty (or excise tax)

On goods produced and / or sold within the Netherlands.

 Environmental tax

Includes taxes on energy, groundwater, tap water, waste and fuel.

 Consumption tax (non-alcoholic beverages)

On non-alcoholic and "ready-to-drink" beverages.

 Import duties

- Turnover tax: 21%, 0% to 6% of the estimated value of the goods.
- Customs duty: depends on the type of imported goods.
- Excise duty: on alcoholic drinks.

 Tax on passenger cars / motorcycles

On passenger cars / motorcycles / vans either individually or company registered.

 Motor vehicle tax

Depends on the type of vehicle (car, van, motorcycle, lorry etc.), weight and type of fuel. It falls under the environmental tax category.

 Tax on heavy goods vehicles

On lorries used solely for road transportation of goods (through motorways). The amount depends on the vehicle’s axles and its classification (EURO-0, EURO-1 and EURO-2).

 Air passenger tax

Originally introduced as an environmental tax with little or even no effect (purely economic measure). The Dutch government is about to abolish it.

Looking for tax advice? Check out our list of Dutch tax services & advisors in the Netherlands!
 

Wage tax in the Netherlands

Your tax contribution is deducted from your salary every month, and this is important for expats to keep in mind when discussing the contract terms. There is an essential difference between your gross salary and your actual net after tax income. The income calculator can be found here.

Below you can see how the tax brackets are defined in the Netherlands for persons younger than 65:

 37% on the first 19.645 euros

 42% on the next 13.718 euros (from 19.646 up to 33.363 euros)

 42% on the next 22.628 euros (from 33.364 up to 55.991 euros)

 52% from 55.992 euros and higher

Direct taxes in the Netherlands

 Divided withholding tax

On dividends distributed by Dutch tax-resident companies. Note that it is gradually abolished.

 Inheritance tax Act

- Inheritance tax: on wealth acquired by inheritance from an individual whose properties are in the Netherlands.
- Gift tax: on the value of anything accepted as a gift from a resident in the Netherlands.
- Transfer tax: on wealth acquired by inheritance from an individual whose last place of residence was not the Netherlands.

 Corporate income tax

Applies to companies that are established in the Netherlands and to those that receive income from the Netherlands but are not established here.

 "Games of chance" tax

On prizes more than 454 euros won in any game of chance.

dutch tax system taxes netherlands

Tax relief through a salary split

Individual financial planning experts Finsens discuss salary split in an employment situation or as the director of a company in the Netherlands.

Owning a house in the Netherlands: Tax implications

What are your options if leave the Netherlands but have bought a house? Patricia van der Hut from Finsens talks about tax implications for expats.

Tax time in the Netherlands: Annual tax return

Patricia van der Hut from Finsens talks about the income tax system in the Netherlands and explains what expats must know about the annual Dutch tax return.

Dutch Tax: Frequently asked questions about the 30 percent ruling

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Dutch Tax Tips: Using a company car

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Dutch Tax: Announced measures for severance payments

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Dutch Tax Plan 2014

Nico Koppel talks about the new Dutch Tax Plan and explains some of the major changes in taxation laws that will come info effect in 2014 in the Netherlands

Dutch Tax Tips: Contractors & Freelancers

Thinking of starting off as a contractor or freelancer in the Netherlands? Here are some useful tips and a summary of the most common Dutch tax deductions.

Dutch Tax Tips: Taxation of domestic & foreign income

Expats might have income from abroad and from employment or self-employment in the Netherlands. Learn more about resident and non-resident taxpayers.

Dutch Tax Tips: Deductible costs on the tax return

How much do you know about deductible costs on the Dutch income tax return? Nico Koppel shares tips to reduce your taxable income & save money!

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