Dutch tax system & Taxes in the Netherlands

Income tax in the Netherlands

If you are working in the Netherlands then you will need to pay tax on your income.

Employees have wage tax withheld from their salary by their employer, while self-employed people must calculate and pay their tax via the annual tax return (in addition to quarterly VAT tax payments).

Even though wage tax has already been withheld from your gross salary (as an advance levy on your income tax) it is usually still necessary to complete an annual income tax return to balance out the already-paid wage tax with other financial aspects like your partner’s income, a mortgage, other income sources or tax deductions such as study or health-care costs.

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.

Tax system changes in 2015

As of July 1, 2015, the Dutch tax office has increased the penalties for undeclared income. The penalty for voluntarily declaring hidden income, wealth or inheritance has risen from 30 to 60 per cent. Hidden income that is discovered by the Belastingdienst risks a fine of 300 per cent.

dutch tax system taxes netherlands

Filing your Dutch tax return: 10 things you need to know

Find out about 10 of the main rules, benefits and refund opportunities that apply to the annual Dutch tax return.

How to file your Dutch tax return: Your questions answered

Tax time is coming up! Unsure about how to do your tax in the Netherlands? Finsens explains the basics of submitting you annual income tax return.

30% tax ruling for expats in the Netherlands: A 2015 update

Wondering what the 30 per cent tax ruling requirements are in 2015? Find out the main criteria expats must fulfill to qualify including minimum salary.

New Dutch laws in effect from July 1, 2015

A series of new and revised laws came into effect on July 1. From employment and income to housing and property, find out if you are affected.

Taxation of US nationals in the Netherlands

US nationals living in the Netherlands are subject to special taxation rules, depending on their tax residency status and pension schemes.

Deducting study costs in your Dutch tax return

Did you know that many work-related study courses and materials are tax deductible? Learn about the possible tax benefits of declaring your study costs.

Tax time in the Netherlands: filing your 2014 tax return

Patricia van der Hut from Finsens talks about the basics of the Dutch income tax system and explains what expats need to know about the annual tax return.

Your 2014 tax return: refund opportunities!

Are you entitled to a tax refund for 2014? Find out why it might be worth submitting a Dutch tax return for last year.

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.

Official issues
This site uses cookies. By continuing to browse IamExpat.nl you are agreeing to our use of cookies. Click here to learn more