Income tax

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 program
click here (available for Macintosh, Linux and
Windows).


Indirect taxes

› Value added tax (VAT)
On the sale price (usually 19%).

› 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 (e.g.
Smirnoff Ice) beverages.

› Import duties
- Turnover tax: 19%, 0% - 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 the road transport 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.

Wage tax

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:

› 33,45% on the first 18.218 euros (2,30% taxes & 31,15% social security
contributions)
› 41,95% on the next 14.520 euros (10,8% taxes & 31,15% social security
contributions)
› 42% on the next 21.629 euros (tax only)
› 52% on the remainder (tax only)


Direct taxes

› 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 in 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.


Related articles
› Expat tax in the Netherlands
› Dutch tax decree on international short term
assignments

Useful link
› Dutch Tax Expat Experts Balthazar: tax
consultancy firm specialised in advising foreign
companies and individuals that invest in or via
the Netherlands.